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Shit I got the names of the towns mixed up Bariloche is basically a Bavrian town in the Andes which was a well known hangout for Germans after the war, but wasn't the one I was thinking about when I said weird shit was going on there for decades...well aside from things like former SS officers running one of the schools there. It's actually a pretty nice town with a slightly (to what extent is up to debate) checkered past when it comes to being a permissive place for Germans with Third Reich ties to settle in.
The one I was thinking of but got the names mixed up with is what used to be called Colonia Dignidad and is now Villa Baviera (Bavarian Village) which is a bit over the border in Chile. That place is pretty much a colony/compound of Germans that showed up in 1961, there were allegations of child sexual abuse, torture, and murders there when it was run by a former Wehrmacht corporal turned cult leader. They were very hostile to outsiders, and not much of what went on there was known outside it until some people basically ran away and never looked back. They have a watchtower that can see for miles, vehicle barricades, barbed wire fences, underground tunnels, small arms manufacturing bunkers, you name it. They even found 1960s era motion detection stuff around the compound that would have been state of the art when it was put in but doesn't seem to work now. The CIA even said that Mengele lived there for a time.
After the former corporal was extradited back to Chile on the child sex charges he'd already been convicted of in absentia there (he hid out in, wait for it, Argentina for 8 years after he was accused) along with a bunch of added charges from everywhere from Chile to France to Germany, the leadership changed the name to Villa Baviera and made "reforms." Now they will even let some of the kids leave to go to college. Currently they have a restaurant that tourists can visit to partake of their authentic German sausages which are made on site but they still don't like questions about anything to do with "old German things" and there are still armed guards all over the place.
It is a weird and creepy place.