Meanwhile, the CITGO Auction seems to be reaching its peak moment in the Delaware Court, as Girard Street Investment Holdings LLC sues the U.S. Department of the Treasury and the Department of State in the District Court for the District of Columbia for failing to provide information about the scope of sanctions against Venezuela.
The plaintiff, a subsidiary of Gramercy Distressed Opportunity Fund LLC, makes this demand under the claim that both U.S. government agencies are not complying with the Freedom of Information Act (FOIA).
The lawsuit seeks to obtain documents related to the sanctions imposed by the U.S. against the Government of Venezuela, its state-owned enterprises, and specific individuals.
The Girard Street Lawsuit
On January 24, 2025, Girard Street Investment Holdings LLC, a limited liability company established under Cayman Islands law, filed a lawsuit against the U.S. Departments of Treasury and State, accusing them of failing to fulfill their obligations under the Freedom of Information Act (FOIA). The plaintiff is a subsidiary of Gramercy Venezuela Opportunity Fund II, a Cayman Islands corporation.
Specifically, Girard Street is seeking documents related to the sanctions imposed on Venezuela, its state-owned companies, and specific individuals. The plaintiff requests the information used to designate certain individuals and entities.
Despite the efforts made to comply with the requirements, these agencies have not produced the records nor provided a timetable for their disclosure, which constitutes a constructive denial of the FOIA requests.
Girard Street Investment Holdings claims that both Treasury and State have “constructively” denied their FOIA requests by failing to provide a determination or a timeline for the production of records within the regulatory deadlines, even after considering the “unusual circumstances” that allow for an extension.
The lawsuit focuses on obtaining factual information and unpublished policy statements related to several Executive Orders on sanctions against Venezuela and the designations of specific individuals as Specially Designated Nationals and Blocked Persons (SDN).
Background: U.S. Sanctions on Venezuela
The lawsuit states that Venezuela has remained in a “state of turmoil” for the last decade, prompting the U.S. to declare a national emergency and impose sanctions.
According to Executive Order 13692 issued on March 8, 2015, by then President Barack Obama, the sanctions were based on U.S. concerns regarding:
- Erosion of the government’s guarantees of human rights in Venezuela.
- Persecution of political opponents.
- Restriction of press freedoms.
- Use of violence and human rights violations in response to anti-government protests.
- Arbitrary detention and arrest of anti-government protesters.
- Exacerbation of significant public corruption.
Furthermore, Executive Order 13692 (Obama, March 8, 2015): Blocked properties and suspended entry for certain individuals.
Meanwhile, the Executive Orders 13808, 13827, 13835, 13850, 13857, 13884 (Trump, 2017-2019): Imposed additional sanctions to block the properties of the Venezuelan government and individuals involved in the turmoil.
FOIA Requests and Timeline
Girard Street Investment Holdings LLC filed separate FOIA requests to the Treasury Department (OFAC) and the State Department on November 12, 2024.
To OFAC, it requested a broad range of documents, including:
- Factual information gathered and reviewed by OFAC regarding the implementation of Executive Orders (EOs 13692, 13808, 13827, 13835, 13850, 13857, 13884) and the Sanctions Regulations on Venezuela (31 CFR part 591).
- Policy statements and interpretations about these EOs and regulations that were not published in the federal register.
- Factual information related to any other U.S. sanctions on Venezuela.
- Factual information related to responses to requests for reconsideration of sanctions.
It also requested factual information related to the designation of specific individuals and entities as SDNs under the Executive Orders, namely:
- Raúl Antonio Gorrín Belisario (January 8, 2019),
- Petróleos de Venezuela, S.A. (PDVSA) (January 28, 2019),
- Evrofinance Mosnarbank (March 11, 2019),
- Central Bank of Venezuela (April 17, 2019),
- Cubametales (July 3, 2019),
- Rosneft Trading S.A. (February 18, 2020).
- Simón Alejandro Zerpa Delgado and Carlos Erik Malpica Flores (July 26, 2017),
- Rodolfo Clemente Marco Torres (January 5, 2018),
- Diosdado Cabello Rondón and José David Cabello Rondón (May 18, 2018), Manuel Salvador Quevedo Fernández (February 15, 2019),
- Iliana Josefa Ruzza Terán (April 17, 2019).
As of November 12, 2024, when OFAC acknowledged receipt of the request, there have been some exchanges between the plaintiff and OFAC on different dates, but by the time the lawsuit was filed on January 24, 2025, the Treasury Department had not produced any records.
Request to the State Department
Girard Street Investment Holdings LLC requested the State Department for factual information collected and reviewed in relation to the drafting, issuance, and implementation of the same Executive Orders (EOs 13692, 13808, 13827, 13835, 13850, 13857, 13884).
Additionally:
- Policy statements and interpretations about these EOs that were not published.
- Factual information related to any responses to a reconsideration request.
- Interactions with the State Department: December 3, 2024: Acknowledgment of receipt from State, indicating they could not respond within 20 days due to “unusual circumstances,” including the need to “search and collect the requested records from other offices or overseas posts.”
By the date of the lawsuit, the State Department had not produced any records, a determination on what records will be produced, nor a timeline for the production of records.
Plaintiff’s Relief Requests
Due to the failure of the U.S. government agencies sued under the Freedom of Information Act (FOIA), 5 U.S.C. § 552 et seq., Girard Street Investment Holdings LLC requests the Court to:
- Declare that the failure of the Departments of Treasury and State to provide the requested records is illegal under FOIA.
- Issue a court order directing the Treasury and State to make the requested records available to the Plaintiff without further delay, and establish a deadline for compliance.
- Provide for expedited procedures in this action.
- Award the Plaintiff reasonable costs and attorney’s fee incurred in this action.
- Grant any other relief the Court deems just and appropriate.
Parties’ Status Report
On June 27, 2025, a joint status report was produced where OFAC indicated that it was processing some parts and anticipating an initial production of documents. On the other hand, the State Department said it is working on its part of the request, having found a large number of potentially relevant records and collaborating with the plaintiff to refine the search parameters.
The first production of documents from OFAC is expected to occur by the end of July 2025, and discussions about the searches and production timeline will continue at least until mid-August 2025.
The parties requested the court a reasonable period to continue deliberations on the search and document production timeline. They proposed to submit a new joint status report by August 11, 2025, or sooner.