London – Well, well. Finally, a major publication in the U.S. has picked up on the reports I’ve published on this blog exposing rampant corruption and money laundering by a handful of Venezuelan thugs and their American partners. Today, The Miami Herald featured an article by Otto Reich, former Assistant Secretary of State for Western Hemisphere Affairs, and Ezequiel Vázquez-Ger, regarding, guess who? Derwick Associates. Reich and Vázquez-Ger were careful not to mention any names explicitly to avoid potential letters to The Miami Herald from the attacking lawyer Héctor Torres preventing publication, but all necessary references are there.
I’ve been informed that the latest twist in the saga is that the law firm of Al Cárdenas, Tew Law, which defended criminal Ricardo Fernández Barrueco in the past, has been hired by Derwick Associates in its spurious defamation case against Oscar García Mendoza. They are now also representing David Osío, another Bolivarian banker deeply involved in money laundering for quite some time. Moreover, Osío’s financial company, Davos International Bank, is allegedly part of a Ponzi scheme that cost PDVSA an estimated $500 million (Moris Beracha, another notorious Venezuelan money launderer, was also involved in this concert).
So what do we have here? A real who’s who of Venezuela’s Boligarcs and their 2.0 version – Bolichicos – using basically the same lawyers (Cárdenas et al.) and the same PR firm (FTI Consulting) without definition. Is it a coincidence or pure stupidity? If any of the parties mentioned are guilty, a domino effect is likely to take down the rest, as they are all connected through illegal financial transactions. And if there was ever any doubt that the Chávez regime is behind all this, just look at how the Superintendency of Banks of Venezuela (SUDEBAN) inexplicably seems to have taken a side in an issue far beyond its competence. Interesting times are ahead.
Next, the full article by Reich and Vázquez-Ger.
Hugo Chávez of Venezuela and his American business partners
Read more here: http://www.miamiherald.com/2013/03/02/v-fullstory/3262092/venezuelas-hugo-chavez-and-his.html
Venezuela is mired in a political and economic tragedy of catastrophic proportions. As a result of Hugo Chávez’s “21st-century socialism,” food and other essential items are increasingly scarce, while violence and crime are skyrocketing.
The country’s main rulers include individuals designated as “drug lords” by the U.S. Department of the Treasury, as well as civilians and military officers more interested in acquiring personal wealth than in managing civil institutions. It should not be surprising, then, that some unscrupulous Venezuelans have made enormous fortunes there recently.
The Venezuelan term for the beneficiaries of this 21st-century chaos is “boliburgueses” or “bolichicos.” An approximate translation of these Spanish words would be “Boligarchs” and “Young Boligarchs,” referring to the new oligarchy that always accompanies revolutions supposedly carried out in the name of the exploited.
In a free economy like ours, an entrepreneur can amass a multimillion-dollar fortune after much effort and competition if they manage to create a product or service that people are willing to buy. For example, according to Forbes, the founder and former CEO of Yahoo, Jerry Yang, has an estimated fortune of $1.2 billion, while Aubrey McClendon, co-founder of Chesapeake Energy, the second largest natural gas producer in the U.S., is worth an estimated $1.1 billion. No reasonable person in the United States would hold back on those successful executives and others even more prosperous, like Bill Gates of Microsoft, Jeff Bezos of Amazon, or the late founder of Apple, Steve Jobs.
However, in Chávez’s Venezuela, a politically favored group (some lacking prior experience in complex sectors like energy and finance) was able to amass fortunes, sometimes in just four years, allowing them to purchase lavish mansions in the U.S., extravagant properties in Europe, the most expensive private jets and cars, exceptional racehorses, and more.
The exact amount of these fortunes is impossible to estimate, as they were obtained illegitimately and are hidden by aware or unaware bankers, mostly abroad.
How does this affect the United States and why should we care?
Because most of the guilty reside or regularly visit this country. They don’t pay U.S. taxes on most of their wealth because they only contribute the “few” million dollars necessary to maintain their lavish lifestyle. They use U.S. banks to move money and maintain their extravagant properties. They rely on prominent public relations consultants, law firms, “private investigation” agencies, and tax specialists who help clean their image and protect their assets, but also intimidate those who might expose their clients.
To erase their traces and attempt to enjoy the privilege of living in our country, some boligars have initiated lawsuits against honest Venezuelan entrepreneurs in U.S. courts. The purpose is to create a smokescreen to hide and prevent the U.S. government from expelling the true criminals. Accustomed to the arrogance of power in their country, they believe money triumphs over the law.
Some of their lawyers send threatening letters to journalists and media outlets to block negative reports about their clients. Apparently, this is what one does when the main cause of the country’s destruction rests on their shoulders.
It is essential to point out that most Venezuelans who have reached our shores in search of refuge are honest victims of Chávez’s kleptocracy.
The mere fact of having made money in Venezuela doesn’t make one dishonest.
As for the term “boligarcas,” it refers to those who knowingly benefited from the looting of their nation, who have amassed fortunes exceeding $1-2 billion, often from illegitimate government contract awards, bribes, and other unethical and immoral activities.
The destruction of Venezuelan society is the result of the actions of Venezuelans themselves: Those who have governed for the past 14 years with failed policies based on Marxist ideology and class hatred. Those who did not dare to speak out in time against Chávez’s authoritarianism and theft. And those who ignored any sense of morality and instead exploited the absence of the rule of law to build massive fortunes at the expense of their compatriots.
The United States bears no responsibility for the Venezuelan tragedy.
But we would be complicit if we remain silent in the face of the looting, especially when we know where much of the money is, and that many of these looters today enjoy the peace and security that sustains the rule of law in our country.
The U.S. government must stop providing refuge to Chávez’s business partners in the United States. Federal officials know who they are.
Otto Reich is a former Assistant Secretary of State for Western Hemisphere Affairs and U.S. Ambassador to Venezuela. Ezequiel Vázquez-Ger is a member of the nonprofit organization Forum of the Americas for Freedom and Prosperity.