Argentina President facing fraud investigation after paying bondholders

Argentina's President Cristina Fernandez could be in legal trouble after a federal prosecutor found grounds for a criminal fraud investigation.

The probe involves the president, her central bank chief, top tax collector and commerce secretary.

Argentine presidents commonly face formal legal complaints but rarely do they progress to this stage. A judge will decide whether to proceed.

Prosecutor Carlos Stornelli said evidence justified a formal criminal investigation based on complaints filed by an opposition MP over the president's use of emergency decree powers to use money from Argentina's central bank reserves to pay off foreign debt.

Legislator Elisa Carrio says bondholders benefited but the Argentine people were defrauded.