The 55-year-old was said to have pretended to be a female visitor, Jacinta Elvira Araujo, wearing a long skirt, wig, fake breasts, blusher and painted his nails pink as he tried to escape from the prison during visiting hours.
But the murderer who obviously forgot to rehearse on his walking steps and voice was caught at the jail's exit.
However, the Prison officials are now contemplating to transfer him from San Pedro Sula jail to the notorious El Pozo jail in Santa Barbara, known as Honduras' most dangerous prison.
Argueta, a gang leader known as Don Chico, has been at the jail since September 2015. He was charged with murder and firearms offences.