Argentine Football Association Under Investigation for Alleged $42 Million Fund Diversion

U.S. Authorities Probe AFA Over Alleged Fund Diversion

The Argentine Football Association (AFA) is currently under investigation by U.S. authorities for the alleged diversion of over $42 million in funds. These funds were reportedly generated from the commercial exploitation of the Argentine national football team's rights. The complaint was filed with the U.S. Attorney's Office for the Southern District of Florida and the Financial Crimes Enforcement Network (FinCEN), with federal prosecutor Jason A. Reding Quiñones overseeing the matter.

The investigation reportedly stems from a U.S. court-ordered discovery process that compelled several banks to release confidential records.

TourProdEnter LLC at the Center of Allegations

Central to the alleged scheme is TourProdEnter LLC, a U.S.-based company that manages the AFA's international revenues and commercial rights abroad. Reports indicate that TourProdEnter LLC accumulated more than $260 million over the past four years across four U.S. banks. However, only a portion of these funds was allegedly used to cover the federation's legitimate activities.

It is estimated that at least $42 million of these funds were diverted to four companies incorporated in Florida, which reportedly have no employees or declared commercial activity, suggesting they may be shell companies. Additionally, $109.9 million was reportedly transferred to a securities agent in Uruguay, which then utilized a financial vehicle in the British Virgin Islands. The investigation is said to cover the period between 2019 and 2023.

Broader Scrutiny and Related Investigations

This investigation into the alleged fund diversion is not the only financial scrutiny facing the AFA. In early December, federal police in Argentina conducted raids on the AFA headquarters and at least 17 professional football clubs as part of a separate money laundering and tax evasion probe. This separate inquiry is linked to Sur Finanzas, a private financial services company that sponsored AFA tournaments and several clubs. The alleged illicit transactions in this case are reported to total approximately 818 billion pesos, equivalent to about $560 million.

AFA President Claudio 'Chiqui' Tapia and Treasurer Pablo Toviggino are reportedly facing charges of financial irregularities in connection with these broader allegations. The Argentine government, under President Javier Milei, has publicly supported the ongoing investigations. Senator Patricia Bullrich has also filed a complaint against Tapia and Toviggino with the CONMEBOL Ethics Committee.

Ongoing Legal Proceedings

The multiple investigations underscore a period of intense legal and financial scrutiny for the Argentine Football Association. While the AFA has maintained its innocence, stating it 'operates with transparency and ethical standards,' the ongoing probes by both U.S. and Argentine authorities highlight significant concerns regarding the management and oversight of the federation's substantial revenues. The outcomes of these investigations are expected to have considerable implications for the leadership and financial practices within Argentine football.