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Feb 20 (Reuters) - Argentina midfielder Fernando Gago scored his first goal for Velez Sarsfield as the Argentine champions crushed Chile's Deportes Iquique 3-0 in the Libertadores Cup on Wednesday.
Midfielder Federico Insua and striker Ezequiel Rescaldini, who looked marginally offside as he ran onto Ivan Bella's through ball, put former the South American champions two up in the first half.
Gago, on loan from Valencia, completed the Group Four rout with a 68th-minute free kick from outside the box that took a deflection from defender Edson Puch at Velez's El Fortin ground in Buenos Aires.
For Velez, it was a welcome return to form after they lost their two previous matches, including a league upset at home by Independiente on Saturday.
"We knew this kind of performance was going to come and it came today," Insua told reporters.
Velez have three points from two matches in Group Four after their 1-0 loss away to Ecuador's Emelec last week. Penarol of Uruguay lead the group with six points after beating Emelec 1-0 in Montevideo on Tuesday.
On a bad night for Chilean clubs, Huachipato were upset 3-1 at home by Venezuela's Caracas FC, for whom Louis Pena scored twice in the Group Eight clash in the south-central city of Talcahuano.
The Chilean champions had caused the shock of the opening week with a 2-1 away win over former Libertadores Cup winners Gremio of Brazil.
The first three matches in Group Eight have all been home defeats with Caracas losing last week to Brazilian champions Fluminense, who were at home to Gremio later on Wednesday night.
South American and world club champions Corinthians were opening their defence of the trophy on Wednesday away to Bolivia's San Jose in a Group Five match in the mining city of Oruro - 3,700 metres above sea level. (Writing by Rex Gowar in London, editing by Nick Mulvenney)