London – Well, well. Finally, a significant U.S. publication has echoed the reports I’ve shared on this blog regarding the rampant corruption and money laundering orchestrated by a few Venezuelan thugs and their American accomplices. Today, The Miami Herald published an article by Otto Reich, former Assistant Secretary of Western Hemisphere Affairs, and Ezequiel Vazquez-Ger, focusing on none other than Derwick Associates. Reich and Vazquez-Ger were careful not to name anyone explicitly, likely to avoid potential letters from the attack lawyer Hector Torres that could obstruct publication, but all necessary references are present.
I’ve learned that the latest development in this saga involves Al Cardenas’s law firm, Tew Law, which previously defended criminal Ricardo Fernandez Barrueco and is currently representing Derwick Associates in their dubious defamation case against Oscar Garcia Mendoza. Now, it appears they are also working with David Osío, yet another Bolivarian banker heavily involved in money laundering for quite some time. Furthermore, Osío’s financial institution, Davos International Bank, is allegedly linked to a Ponzi scheme that cost PDVSA around $500 million (notorious money launderer Moris Beracha also participated in this scheme).
So what do we have here? A true who’s who of Venezuela’s Boligarchs and their 2.0 version -Bolichicos- utilizing basically the same lawyers (Cardenas et al) and the same PR firm (FTI Consulting). Is it just a coincidence, or plain stupidity? If any of the mentioned parties are found culpable, a domino effect could likely bring down the rest, as they are all interconnected through illegal financial transactions. And if there was ever any doubt that the Chavez regime is behind all this, one only needs to observe how Venezuela’s Banks Superintendency (SUDEBAN) has inexplicably taken sides in a matter well beyond its jurisdiction. Interesting times ahead.
Venezuela’s Hugo Chávez and his U.S. business partners
Venezuela is currently engulfed in a political and economic tragedy of catastrophic proportions. Due to Hugo Chávez’s “21st Century Socialism,” essential goods like food are becoming increasingly scarce, while violence and crime are soaring.
The top rulers in the country include individuals labeled as “drug kingpins” by the U.S. Treasury Department, alongside civilians and military officials more focused on accumulating personal wealth than on managing civil institutions. Thus, it’s no surprise that some unscrupulous Venezuelans have amassed enormous fortunes in recent years.
The Venezuelan derogatory terms for those benefiting from this chaos are “Boliburgueses” or “Bolichicos.” A rough translation from Spanish would be “Boligarchs” and “Young Boligarchs,” referring to the new oligarchy that typically arises during revolutions claimed to be for the exploited.
In a free economy, like ours, an entrepreneur can build a multimillion-dollar fortune through hard work and competition by offering attractive products or services. For instance, Forbes Magazine notes that Jerry Yang, the founder and former CEO of Yahoo, has an estimated fortune of $1.2 billion, while Aubrey McClendon, co-founder of Chesapeake Energy, is valued at $1.1 billion. No reasonable American would disdain these successful business figures, alongside even more affluent individuals like Bill Gates, Jeff Bezos, or the late Steve Jobs.
However, in Chávez’s Venezuela, a politically favored group (some with no prior experience in complex sectors like energy and finance) could accumulate wealth enabling them to buy luxury mansions in the U.S., extravagant estates in Europe, the most expensive private jets and cars, and exceptional racehorses, sometimes in just four years.
The exact amounts of these fortunes are difficult to assess since they were acquired illegitimately and are being concealed by compliant bankers, mostly overseas.
Why does this matter to the United States, and why should we care?
Because many of the perpetrators reside in or frequently visit this country. They often don’t pay U.S. taxes on their wealth, only bringing in the “few” millions needed to sustain their lavish lifestyles. They exploit U.S. banks to transfer money and maintain their extravagant properties. Prominent PR consultants, law firms, “private investigation” agencies, and tax specialists assist in polishing their images and safeguarding their assets while also intimidating anyone who might expose their clients.
To obscure their tracks and continue enjoying the privileges of living here, some Boligarchs have initiated lawsuits against honest Venezuelan businessmen in American courts. This tactic aims to create a smokescreen to shield themselves from expulsion by the U.S. government. Accustomed to their country’s power dynamics, they seem to believe that money can override the law.
Some attorneys send threatening letters to journalists and media outlets to suppress negative coverage about their clients. Apparently, this is standard practice when one’s actions have contributed to their country’s devastation.
It’s crucial to highlight that the vast majority of Venezuelans seeking refuge on our shores are honest victims of the Chavista kleptocracy.
Simply having made money in Venezuela does not imply dishonesty.
As for the label “Boligarchs,” it refers to Venezuelans who have intentionally profited from the plundering of their nation, accumulating fortunes exceeding $1-2 billion, often through illegitimate government contracts, kickbacks, or other unethical conduct.
The destruction of Venezuelan society stems from the actions of those who have governed over the past 14 years with failed Marxist policies and class hatred. These are the individuals who failed to speak out against Chávez’s authoritarianism and corruption in time. They disregarded any moral principles, exploiting the absence of the rule of law to amass vast fortunes at the expense of their countrymen.
The United States is not responsible for the tragedies in Venezuela.
However, we would be complicit if we remained silent in the face of the looting, especially as we know where much of the money lies and that many perpetrators enjoy peace and security enabled by law in our country.
The U.S. government must cease offering refuge to Chávez’s business associates within the United States. Federal officials are aware of their identities.
Otto Reich served as the assistant secretary of state for Western Hemisphere Affairs and as U.S. ambassador in Venezuela. Ezequiel Vazquez-Ger is a member of the nonprofit organization Americas Forum for Freedom and Prosperity.