A federal court in Argentina has requested the immediate arrest of businessman Lázaro Báez, sentenced for his part in a corruption scheme known as the “K money trail,” which former president Cristina Fernández de Kirchner is also being investigated for.
The ruling, issued on Wednesday by Federal Court 4, came one day after the Supreme Court upheld Kirchner and Báez’s conviction in a separate case, called “Vialidad”.
Two weeks ago, the Supreme Court rejected Baéz and Kirchner’s request for acquittal in the K money trail case, and ordered the arrest of six people who were sentenced.
Báez was serving his ten-year sentence under house arrest for money laundering. According to the federal court’s ruling, he served three years and eight months. He must serve the remaining six years and three months in a facility of the Federal Penitentiary Service, the court ruled.
The court also rejected the defense’s arguments to take into account Baéz’s detention times from other cases, as they stemmed from a “different material fact,” in the final tally.
The K money trail case stemmed from a 2013 journalistic investigation by Jorge Lanata. According to the investigation, Baez, who is allegedly linked to the Kirchners, diverted money intended for public infrastructure to tax havens. The funds reportedly came from government contracts signed for a significantly higher price than the true value of the services provided, with the difference being sent abroad.
The rejection of Kirchner’s appeal means that she will remain under investigation for the K money trail case, even when she is under arrest for the Vialidad case.
In the Vialidad case, Kirchner was convicted of funneling 51 public works contracts in Santa Cruz province to a company belonging to Báez, in a process deemed fraudulent by Argentina’s judiciary.