The CITGO auction process is full of various situations, including a court motion requesting an investigation into the alleged irregularities committed by the Ad Hoc Board of PDVSA. This action was presented by the victims of the “Venezuelan Oil Holocaust,” represented by Leroy A. Garrett.
In the context of the ongoing case between Crystallex International Corp. and the Bolivarian Republic of Venezuela in the Delaware Court, Garrett argues there are concerns regarding transparency and allegations of corruption that could impact the asset sale process.
The motion seeks greater transparency in the CITGO auction and a temporary suspension of the sale procedures until these concerns are investigated and clarified. The primary goal is to ensure fairness and justice for the victims whose claims have not been addressed, aiming to protect the integrity of the Venezuelan refinery’s sale process.
The Motion
The motion seeks greater transparency in the CITGO auction and a temporary suspension of the sale procedures.
On July 21, 2025, Leroy A. Garrett, representing Petroamigos de Venezuela, an organization comprising 23,000 victims of the “Venezuelan Oil Holocaust,” filed a motion with the U.S. District Court for the District of Delaware to investigate alleged irregularities within the Ad Hoc Board of PDVSA, as well as to ensure more transparency for bidders and a temporary suspension of the CITGO auction pending the results of the investigation.
The central arguments of the request revolve around the alleged corrupt reputation of the “shadow government” of Juan Guaidó and the inaction of the Ad Hoc Board of PDVSA, especially its president, Horacio Medina, regarding the victims’ claims.
The motion alleges that the reputation of Guaidó’s so-called interim government is “marked by accusations of irregularities and ongoing investigations by law enforcement.”
Among the grounds for the request, the petitioners cite a journalistic review from El Mundo in June 2025, which reports on “alleged bribes to Spanish officials” and “a historical scrutiny of the mismanagement of humanitarian funds in 2019.”
The action also extends to the Ad Hoc Board of PDVSA due to the “inaction of its president, Horacio Medina, despite his role in overseeing CITGO licensed by OFAC and his union background.”
Likewise, references are made to “U.S. Treasury sanctions on aligned officials in 2019 and investigations into corruption schemes, as highlighted by reports from COHA and PBS Frontline, raising alleged concerns of bad faith within the Ad Hoc Board.”
Inaction Regarding Victim Claims
The motion emphasizes the neglect of the claims from the 23,000 victims of the “Venezuelan Oil Holocaust”—namely, workers dismissed from Petróleos de Venezuela S.A. without any compensation—by Horacio Medina, despite the expectations tied to his position.
This fact, according to the petitioners’ view, justifies a discreet investigation to confirm the transparency of the CITGO auction process.
The mover seeks to “ensure justice for the victims whose claims have faced prolonged denial.”
Greater Transparency in the CITGO Auction
Similarly, the motion advocates for “greater transparency in the bidding process consistent with current objections.”
It references existing objections, including the citation of Red Tree Investments LLC, which is investigating the financing risks from PDVSA 2020 bondholders.
Given this scenario, the petitioners seek the court to “order an investigation, mandate transparency,” and ensure the disclosure of “Ad Hoc communications regarding the claims.”
Temporary Suspension of the CITGO Auction
Furthermore, Petroamigos de Venezuela, through Leroy A. Garrett, requested the Delaware Court overseeing the process to order a temporary suspension of the CITGO auction until the investigation concludes and a hearing is held.
They argue that this measure is “prudent” and would prevent “irreparable harm to the victims,” while also aligning with current objections and maintaining the status quo of the process without detriment.
The petitioners appeal to jurisprudence and cite the case Nken v. Holder, highlighting the probability of success that transparency and the balance of equities would have to favor justice and the public interest in impeccable processes.