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Wachendorf also served in Pancho Villa's revolutionary army in Mexico and attained the rank of Major. To impress the Mexicans, he took the name "Horst von der Goltz", the name under which he was detained together with other German mercenaries from Villa's opposition for a time in Chihuahua. The consul there began recruiting him to work in the espionage ring of Franz von Papen. After World War I began, on August 3, 1914, Wachendorf's commanding general, Raúl Madero, set him free for six months. Goltz met the German consul Otto Kueck in El Paso, Texas, who told him about the new Office of Military Attaché of Franz von Papen (for sabotage and subversion) in the Wall Street District of New York City, which he soon joined.