The Venezuelan billionaire that the US has been investigating for money laundering, now has a Pentagon Oil deal
Before recently, the billionaire who helped the Trump administration broker a sweeping long-term deal with Venezuela had been the target of U.S. investigations into money laundering involving funds embezzled by the state-owned PDVSA. Alejandro Betancourt, who helped U.S. authorities capture authoritarian leader Nicolas Maduro before, is now Washington's main partner in a unique oil deal with Caracas.
According to the announcement made last week, the U.S. will have access to one-fifth Venezuela's oil reserves for many decades. The Office of Strategic Capital of the Pentagon takes a 35% share in North American Blue Energy Partners, Betancourt's firm and a well-known crude producer in Venezuela. The State Department will have the right to purchase 20% of NABEP oil at cost and receive preferential access to 80%.
The deal is a dramatic change in fortune for Betancourt. According to four sources familiar with U.S. policies in Venezuela, Betancourt was a key player in U.S. planning and strategy in the run-up to January 3, when the former president Maduro was removed from power. He then flew to New York, where he will face drug trafficking charges, which Maduro has denied.
A U.S. official, who declined to name himself, said that the majority of the legal challenges against Betancourt were more than a decade old and that the American had no current legal issues. The official stated that Betancourt's experience in pumping oil into Venezuela made him the ideal partner to boost production under the agreement.
It was not possible to determine when U.S. federal prosecutor paused the investigation of Betancourt, or if it was in exchange for Betancourt's cooperation with Trump's administration.
Sarah Chouraqui said that Betancourt has a proven track record in operating on complex energy markets. She said that authorities from multiple jurisdictions have thoroughly investigated the allegations in question and have not brought charges against him.
Chouraqui refused to answer questions regarding his involvement with the Trump Administration or his legal cases.
INFORMATION THAT HELPFULLY ENSFORCED THE U.S. BLOCKADE
According to four anonymous sources, in the months leading up to Maduro’s capture, the billionaire gave information that enabled the U.S. navies to enforce a blockade against sanctioned oil tanks operating in Venezuela. This led to more than a dozen vessels being seized or intercepted. He also helped facilitate negotiations with officials, including Delcy Rodriquez, who was appointed interim president following Maduro’s capture.
Requests for comment from the Venezuelan government were not answered.
According to seven sources, after Maduro was removed, Betancourt continued to play a role as an intermediary, brokering oil deals and other partnership agreements, and helping Washington and Caracas communicate to jumpstart Venezuela's economic growth.
Betancourt facilitated a major oil trading agreement in January that led to more than 135 millions barrels of fuel and crude oil being exported to the United States and Europe. Six people who were familiar with the negotiations and vessel monitoring data also confirm this. This is about half of the oil exported through August.
Could not determine exactly his role in the discussion.
According to two sources familiar with the situation, Betancourt also attended meetings at Venezuela's Miraflores Presidential Palace. Wright said that Betancourt was at Miraflores when U.S. Energy Secretary Chris Wright visited this week. However, Betancourt didn't appear with Wright or Rodriguez?at an oil deal signing ceremony.
Betancourt was investigated in the United States of America, Spain and Switzerland. He has never been indicted.
In Florida, U.S. federal prosecutors halted their investigation of Betancourt earlier this year in connection with a alleged scheme that involved embezzling more than $1 billion from Venezuela’s state-owned company for oil and laundering the money through Miami real estate and Malta and Switzerland bank accounts.
Two of these people claimed that supervisors had discouraged U.S. prosecutors from further investigating Betancourt.
Four people who are familiar with the case claim that the prosecution in the case was not provided with a reason.
Four people with knowledge of the situation said that after the investigation stagnated, U.S. officials pressed the Swiss government to ease their inquiries into the tycoon. Sources said that Switzerland, which also investigated Betancourt on money laundering charges, dropped its request in May to extradite him from United Kingdom.
The Zurich Public Prosecutor's Office refused to comment on the United States' influence in the decision to withdraw their extradition request. However, they said that the case against Betancourt is still ongoing.
The Office stated that "the extradition request has been withdrawn due to certain aspects of UK law on extradition, which we are unable to discuss in detail." This step only concerns the extradition procedures in the UK. "The criminal proceedings against the accused will continue as usual."
Mark Pieth, Swiss anti-corruption and legal expert, described the withdrawal as unusual. "You wouldn't do that if there was a case still pending," he said.
The United Kingdom Home Office declined comment.
A NEW GENERATION of Business Leaders
Betancourt, a member of the Bolichicos (a younger generation of entrepreneurs who made fortunes under the former Venezuelan president Hugo Chavez), is an important figure in the business world. Derwick Associates, a company he founded in 2010, won government contracts worth $2 billion to build power plants during Venezuela's electricity crisis. Some of these contracts were awarded without competition.
Later, government data showed that many plants were operating at only a fraction or even no capacity at all. Meanwhile, Venezuela's grid was still experiencing widespread blackouts. Betancourt, Derwick and others have repeatedly denied any wrongdoing. They claim that the plants were already completed and later failures are due to mismanagement of state authorities. Rodriguez said at a Wednesday press conference that all legal actions against Betancourt’s companies in Venezuela had been dismissed years earlier.
Betancourt formed a partnership in 2012 with the state-controlled PDVSA for the operation of mature fields located in western Venezuela. They would become the core production for NABEP in April 2024, which Betancourt founded with Florida billionaire Harry Sargeant. Sargeant sold shares in NABEP to the company last month.
Mauricio Claver-Carone is a Miami businessman, former Trump adviser, and Caracas policy implementer. He told us last month that Betancourt was a good intermediary for the Trump administration to reach out to Rodriguez, because he understood the oil industry in both countries. He added that Betancourt was helpful to the Trump administration's first term.
Former U.S. Intelligence officials, prosecutors, and diplomats have privately expressed concerns about Betancourt's impact on U.S. foreign policy because of his previous investigation in the U.S., the ongoing investigation in Switzerland, and the proximity he has to former high-ranking officials in the Hugo Chavez or Maduro government.
Former federal prosecutors who are familiar with the situation said that they "scratch their heads" at the current situation.
Six sources claimed that Betancourt had been identified by Miami as an unnamed, unindicted accomplice in a alleged scheme to launder over $1 billion from the state-owned PDVSA oil company. Ten people have now been indicted.
According to the Spanish newspaper El Pais, Spanish authorities opened a new investigation in Spain last year into Betancourt's money laundering activities involving $4 billion that was allegedly embezzled by PDVSA.
Was unable to determine whether he was still under investigation.
The Venezuelan State Oil Company and Spain's National Court did not respond when asked for comments.
According to the flight manifests that were seen by, Betancourt left for Venezuela from West Palm Beach in Florida in late June, and then again in July.
Chouraqui, the lawyer for Betancourt, did not make any comments about his travel.
(source: Reuters)
