MercoPress. South Atlantic News Agency

Former Argentine President Alberto Fernández indicted in Insurance Scandal

Fernández reportedly favored an insurance broker friend with most government policies, blowing up the commissions paid

Buenos Aires City Federal Judge Sebastián Casanello Thursday indicted former Argentine President Alberto Fernández in the so-called “Insurance Case” for “negotiations incompatible with the exercise of public office.” In addition, Fernández was imposed a hefty fine. Casanello also indicted businessman Héctor Martínez Sosa and his wife, María Cantero, Fernández's longtime secretary.

During Fernández's presidency, Martínez Sosa's company secured numerous contracts with 19 public agencies, accumulating a sizeable amount of money worth of commissions.

A key piece of evidence in the case is a 662-page report from the Office of the Prosecutor for Economic Crime and Money Laundering (PROCELAC) showing that before becoming president, from 2010 to 2019, Alberto Fernández had issued bills to Martínez Sosa and related companies for alleged professional services. The last invoice was dated just four days before Fernández assumed the presidency. Once in office, Fernández signed a decree that enabled brokers, such as Martínez Sosa, to act as intermediaries in contracting insurance policies through Nación Seguros for public agencies.

The “Insurance Case” centers on allegations that Fernández, Martínez Sosa, and others illicitly directed the selection of insurance brokers and inflated commissions for policies contracted by public entities via Nación Seguros. Martínez Sosa's company received almost 60% of the commissions paid between 2019 and 2023.

During Fernández's administration, the Martínez Sosa company accumulated contracts with 19 public agencies, including the recently closed National Road Authority (Vialidad Nacional), the National Mint (Casa de la Moneda), Corredores Viales SA, the Fondo de las Artes, and the Supreme Court, among others.

The Insurance Case changed judges in early February, when Julián Ercolini's term as surrogate judge in Federal Court 11 expired. This occurred at a key moment in the investigation because the preliminary hearings had already been completed, and the magistrate was about to decide whether to move on or dismiss the case.

Since then, Casanello reviewed all the documentation and requested additional evidence before making a final ruling on the case's merits, in addition to pursuing other lines of investigation alongside Prosecutor Carlos Rívolo.