Uncle Sam seems to finally be catching up. Yesterday, the Vice President of Venezuela, Tareck El Aissami, and his proxy, Samark López Bello, were designated as kingpins in the sanctioned list by the Office of Foreign Assets Control (OFAC) of the U.S. Treasury Department. Readers of this site might remember previous articles highlighting this. In any case, it’s refreshing to see U.S. authorities waking up to the undeniable reality of Venezuela, a country ruled by criminals. The country’s president, Nicolás Maduro, has two nephews serving prison sentences in the United States for drug trafficking. Allegations against the country’s vice president, Tareck El Aissami, have been around for several years, notably from convicted drug traffickers. It was well-known that terrorists were receiving Venezuelan citizenship, among others by El Aissami, long before CNN decided to “break the news.”
I admit I would’ve preferred to see El Aissami and López Bello behind bars in the U.S., like Carlos Lehder or Manuel Noriega, rather than on the OFAC list. There are few, if any, chances of that happening within Venezuela, or even anywhere in Latin America, where no authorities will take action to enforce Treasury sanctions. Regarding their assets and accounts, there are enough financial institutions, whether controlled by Venezuelans or not, eager to turn a blind eye and help launder the illicit origins of Venezuelan clients’ money.
However, some important details are missing in the Treasury’s announcement. One is the connection between Tareck and the London socialite Robert Hanson. Hanson and his partner Patrick Teroerde led an illegal multi-million acquisition of Cadena Capriles on behalf of Samark López. Despite repeated warnings, the UK’s Serious Fraud Office (SFO) has done nothing to investigate. A request for comments was sent to Teroerde, and his response, if received, will be published here.
Companies House provides information on the shareholders of Yakima Oil Trading, one of Samark Lopez’s corporations: 2000 S INVESTMENT GROUP LTD (Nevis), YPP OFFSHORE HOLDINGS CORP (Barbados), 1000 INVESTMENT GROUP LIMITED, and IVYCITY WORLDWIDE LIMITED (BVI) seem to be connected with López. Derek Stinson, based in London, of Ontier, has acted as López’s agent in Yakima’s dealings. A request for comments sent to Stinson regarding due diligence performed on López and related acquisitions went unanswered.
Another one of López’s entities (Profit Corp.) received over $300 million in acquisition contracts from Petróleos de Venezuela (PDVSA) in November 2014 and March 2015 for gas pipeline construction. Discounting the fact that López is merely El Aissami’s proxy, what credentials or track record did PDVSA consider when awarding those contracts to López?
As I’ve said elsewhere: one thing is to confront corrupt businessmen, like Hanson and Stinson. But for drug traffickers and kingpins? That’s a whole different ball game. The question is: will the Treasury ask the UK’s SFO to take action?
The Treasury sanctions prominent Venezuelan drug trafficker Tareck El Aissami and his main frontman Samark López Bello
02/13/2017
Action targets international network of 13 companies facilitating
Illicit money movements and holding extraterritorial assets
WASHINGTON—Today, the Office of Foreign Assets Control (OFAC) of the U.S. Treasury Department designated Venezuelan citizen Tareck Zaidan El Aissami Maddah (El Aissami) as a Specially Designated Narcotics Trafficker under the Foreign Narcotics Kingpin Designation Act for playing a significant role in international drug trafficking. El Aissami is the Executive Vice President of Venezuela. El Aissami’s main frontman, Venezuelan citizen Samark José López Bello (López Bello), was also designated for providing material assistance, financial support, or goods or services in support of El Aissami’s international drug trafficking activities, and to act for or on behalf of El Aissami. The OFAC also designated or identified as blocked property 13 companies owned or controlled by López Bello or other designated parties, comprising an international network spanning the British Virgin Islands, Panama, the U.K., the U.S., and Venezuela.
As a result of today’s action, U.S. persons are generally prohibited from engaging in transactions or otherwise dealing with these individuals and entities, and any assets that such persons and entities may have under U.S. jurisdiction are frozen.
“Today’s action by OFAC is the culmination of a multi-year investigation under the Kingpin Act to target major drug traffickers in Venezuela and demonstrates that power and influence do not protect those involved in these illicit activities,” said John E. Smith, Acting Director of OFAC. “This case highlights our ongoing focus on drug traffickers and those who help launder their illicit profits through the United States. Denying a safe haven for illicit assets in the United States and protecting the U.S. financial system from abuse remain top priorities for the Treasury Department.”
El Aissami was appointed Executive Vice President of Venezuela in January 2017. He previously served as Governor of Aragua State in Venezuela from 2012 to 2017, as well as Minister of Interior and Justice of Venezuela from 2008. He facilitated shipments of narcotics from Venezuela, including controlling planes leaving a Venezuelan airbase as well as controlling drug routes through Venezuela’s ports. In his previous positions, he supervised or partially owned shipments of narcotics totaling over 1,000 kilograms from Venezuela multiple times, including those destined for Mexico and the United States.
He also facilitated, coordinated, and protected other drug traffickers operating in Venezuela. Specifically, El Aissami received payment for facilitating drug loads belonging to Venezuelan drug trafficker Walid Makled García. El Aissami is also linked to coordinating drug shipments to Los Zetas, a violent Mexican drug cartel, as well as providing protection to Colombian trafficker Daniel Barrera Barrera and Venezuelan trafficker Hermagoras González Polanco. Los Zetas, Daniel Barrera Barrera, and Hermágoras González Polanco were designated as Specially Designated Narcotics Traffickers by the President or Secretary of the Treasury under the Kingpin Act in April 2009, March 2010, and May 2008, respectively.
López Bello is a key frontman for El Aissami and, in that capacity, launders drug proceeds. El Aissami uses López Bello to purchase certain assets. He also manages El Aissami’s commercial arrangements and financial matters, generating significant profits from illegal activities that benefit El Aissami.
López Bello oversees an international network of oil, distribution, engineering, telecommunications, and asset-holding companies: Alfa One, C.A. (Venezuela), Grupo Sahect, C.A. (Venezuela), MFAA Holdings Limited (British Virgin Islands), Profit Corporation, C.A. (Venezuela), Servicios Tecnológicos Industriales, C.A. (Venezuela), SMT Tecnología, C.A. (Venezuela), and Yakima Trading Corporation (Panama). Another entity, Yakima Oil Trading, LLP (U.K.), is owned, controlled, or directed by Yakima Trading Corporation (Panama), or acts on behalf of it. Profit Corporation, C.A. and SMT Tecnología, C.A. have contracts with the Venezuelan government. Between 2009 and 2010, Grupo Sahect C.A. provided warehousing and transportation services for the Venezuelan government agency Productora y Distribuidora de Alimentos, S.A. (PDVAL).
Five U.S. companies owned or controlled by López Bello and/or MFAA Holdings Limited have also been blocked as part of today’s action. These entities are the following limited liability companies registered in Florida: 1425 Brickell Ave 63-F LLC; 1425 Brickell Avenue Unit 46B, LLC; 1425 Brickell Avenue 64E, LLC; Agusta Grand I LLC; and 200G PSA Holdings LLC. Additionally, an aircraft registered in the U.S. with tail number N200VR has been identified as blocked property owned or controlled by 200G PSA Holdings LLC.
As a result of today’s action, significant real estate and other assets in the Miami, Florida area linked to López Bello have been blocked.
Since June 2000, more than 2,000 entities and individuals have been designated under the Kingpin Act for their role in international drug trafficking. Penalties for violations of the Kingpin Act range from civil fines of up to $1,437,153 per violation to harsher criminal penalties. Criminal penalties for corporate officials may include up to 30 years in prison and fines of up to $5 million. Criminal fines for corporations can reach $10 million. Other individuals could face up to 10 years in prison and fines under Title 18 of the United States Code for criminal violations of the Kingpin Act.