A tweet alerted me yesterday about the latest in the lawsuit of Otto Reich against Derwick Associates in New York. District Judge Paul Oetken dismissed the “Claims I and II (RICO) and VII (civil conspiracy)” on August 18. The parties will consult on the appropriate scope and timetable for jurisdictional discovery and will submit a joint letter to the Court with a proposed schedule by or before September 12, 2014.
I’m not a lawyer, and I don’t pretend to be a legal expert. However, I am surprised by how the media has reported Judge Oetken’s decision in Venezuelan outlets. Those following the case in Venezuela might think that Derwick Associates won, but I believe the opposite is true.
Similarly, it may reveal the exact amount of money transferred by Derwick to ProEnergy Services, which will give insight into the differential between the money charged to the Venezuelan state and the money paid for actual work, in other words, the overprice. Potentially, it could show transfers to and from other banks to Derwick’s accounts, such as Davos Financial, Banesco, and, crucially, from Derwick’s to corrupt Venezuelan officials. Discovery could also uncover the exact nature of the contracts with ProEnergy Services and its subsidiaries, as well as other U.S. companies contracted by Derwick.
Discovery allows for statements, and also opens the door for questioning, document requests, etc. What will Derwick do when asked for contracts with Venezuelan institutions, which under some illegal arrangement, they can’t provide for similarly illegal reasons? “Confidentiality clauses”?
And keep in mind: all this will be reported by unintegrated media, like the Wall Street Journal, which recently unveiled what I’ve been saying all along: that U.S. federal agencies are involved in the Derwick case. What El Nacional and others publish in Venezuela, for internal consumption, is absolutely irrelevant. Because this lawsuit is not being handled by Luisa Ortega Díaz, but by truly independent courts that don’t bend to phone calls from above.
Even more sinister, Judge Oetken allows the case to continue while federal and New York state authorities investigate Derwick (which means there is jurisdiction). This is far from over for Derwick…