A former mayor in Argentina has avoided prosecution over alleged money laundering after a federal court found insufficient evidence linking his casino and lottery winnings to an illicit scheme, although the investigation remains open.
Cayetano del Valle Canto, who served as mayor of Saldán in Córdoba province, was investigated after reporting around ARS 37m in gambling winnings over an 18-month period.
According to reports from Argentina's Financial Information Unit and Federal Prosecutor Enrique Senestrari, the suspect's activity was part of a money-laundering scheme in which cash was deposited into gaming machines and later withdrawn as declared winnings.
Canto denied the allegations, saying the gambling activity was for entertainment rather than money laundering. He also argued that lottery prizes were paid directly into his bank account by the Córdoba Lottery, with taxes withheld, while casino winnings did not necessarily represent net profits because funds could be reused for further gambling.
He said “I am not a gambling addict” in his written defense, adding that he maintained an orderly financial life and had never incurred debt as a result of gambling.
In the same 38-page ruling, Ochoa ordered Canto's prosecution, without pretrial detention, for alleged incompatible negotiations involving contracts between the Saldán municipality and Avícola Saldán SAS, a poultry company owned by Canto.
The contracts, made between February 2021 and March 2023 while he was mayor, totaled nearly ARS 5m. The judge also ordered a ARS 20m asset freeze.
Ochoa also found insufficient grounds to prosecute Canto over suspected money laundering through real estate and high-end vehicle purchases.
His three children, including professional footballer Gustavo Damián Canto, were fully dismissed after investigators determined that the vehicles registered in their names were consistent with their own employment income and, in the footballer's case, documented loans.
The tax-evasion charges were dismissed under the principle of the more lenient criminal law, as the amounts investigated fell below the new minimum thresholds required for criminal prosecution
