By Fiorella Perfetto
In a scenario reminiscent of the renowned “Theory of Everything” in physics, the recent accusations formalized by the U.S. Department of Justice against at least five former officials of the Chávez regime are woven into a vast fabric connecting companies, officials, relatives, and friends responsible for embezzling from the Venezuelan nation via Pdvsa and its subsidiaries. The exact figure remains undefined but could easily exceed the country’s reserve values. Conversations, managed amounts, and the methods used for bribery, including contributions to film productions, were revealed by the U.S. Attorney’s Office. It reveals an immense corruption network, accountable for the current collapse of the country’s most crucial industry.
At least five former officials of the Chávez regime have had their names and crimes unveiled by U.S. judicial authorities. While the indictment has been in the Southern District of Texas since August last year, the file is now available to the public. A motion from the U.S. prosecution was introduced on August 23, 2017, “to prevent the indicted from destroying evidence or hiding, as they are outside the United States.”
The accused are part of the network involving Roberto Rincón and Abraham Shiera, the Pdvsa contractors imprisoned in the U.S. awaiting sentencing after admitting their criminal responsibility for violating the Foreign Corrupt Practices Act (FCPA). They conspired to defraud the Venezuelan state of at least one billion dollars, a paltry sum considering the total estimated losses due to corruption in the country.
On October 26, 2017, it was reported that four of the accused were arrested in Spain following a coordinated action between authorities from the U.S. and Spain: Luis Carlos De León Pérez, Nervis Gerardo Villalobos Cárdenas, Cesar David Rincón Godoy, and Rafael Ernesto Reiter Muñoz. The fifth, Alejandro Istúriz Chiesa, remains a fugitive from U.S. justice. The Spanish Civil Guard’s Central Operational Unit arrested the alleged criminals at the request of the U.S. Department of Justice.
The indictment, containing over fifty pages, details how these former officials colluded with contractors Roberto Rincón and Abraham Shiera to create a scheme that enabled the latter to secure lucrative contracts with the Venezuelan state oil company. This is yet another appendage unfolding from the tangled web of officials, companies, friends, and relatives who enriched themselves at the expense of the Venezuelan state, all interconnected.
The “facilitators” received in return money, trips, cars, and other benefits as payment for their illegal actions. They also ensured that the contractors received “timely” payments for debts owed to them by Pdvsa “at moments when the country began experiencing a severe liquidity crisis,” the document explains.
The indictment includes a whole section detailing how Rincón and Shiera “rewarded” the facilitators for their efforts. A beachfront house in Parrot Cay, Bahamas, luxury hotel trips in Aruba, two armored cars worth $107,500 each, a $10,300 handbag, invoices for English classes for two of a foreign official’s children (designated as Official B) exceeding $25,000, plus “recreational trips, vehicles, gifts (including watches and wine), meals, and entertainment” are part of the bribes known to the U.S. prosecution.
However, the list does not only include the five former Chávez officials. This new scheme involves seven companies owned by Roberto Rincón and six belonging to Abraham Shiera, some of which may coincide with those referenced in the indictment that landed these contractors behind bars in December 2015. Moreover, a Swiss entity that facilitated the opening of bank accounts in the country is mentioned, cooperating in justifying the amounts received through fake invoices and purchase orders. A “Swiss banker” whose identity is known to the Grand Jury is also referenced.
“A businessman residing in Florida,” two “foreign officials” (high-ranking Venezuelan officials), a couple of relatives of César Rincón and Rafael Reiter respectively, two partners of Alejandro Istúriz and César Rincón, a law firm, and even a film production company make up the list of associates and co-conspirators in this new branch of the immense corruption scheme uncovered by the capture of Roberto Rincón and Abraham Shiera.
“The individuals and companies mentioned here participated in the conspiracy and laundered the proceeds of corruption,” states the document, foreshadowing the impending actions from U.S. justice. The network laundered at least $27 million through at least nine accounts opened in Switzerland, only in those operations known to authorities in that country. It is worth mentioning that U.S. prosecutors are aware of four additional accounts opened in Swiss banks belonging to Roberto Rincón through which approximately $600 million were managed.
There’s Everything in the World of Pdvsa’s “Weavers”
Nervis Villalobos, “the dwarf,” along with Luis Carlos De León (both without public office at the time of the investigation) and Alejandro Istúriz Chiesa, aka “the louse,” (who was then an assistant to Javier Alvarado, president of Bariven), coordinated all operations enabling contractors Roberto Rincón (alias “the bald one”) and Abraham Shiera (alias “the puma”) to win new contracts with the Venezuelan state oil company and receive timely payments for signed agreements. This is how they avoided being part of the long list of suppliers awaiting Pdvsa to honor its debts due to the economic crisis. In this conspiracy, César Rincón Godoy, “the cousin,” and Rafael “Nadal” Reiter also served as “facilitators.”
All conversations referenced in the indictment come from Shiera’s and Rincón’s phones and email accounts, making it clear that both are cooperating extensively with U.S. authorities in hopes of reducing their sentences in exchange for providing all the information—and the identities of individuals involved in this conspiracy—that will likely be revealed in the near future.
“PAYMENT PROPOSALS WERE THE SUBJECT OF EXTENSIVE COMMUNICATIONS AMONG THE ACCUSED, THEIR PARTNERS, AND CO-CONSPIRATORS, INCLUDING DISCUSSIONS ON HOW MUCH WOULD BE ALLOCATED TO RINCÓN’S BUSINESS AND SHIERA’S COMPANIES. CÉSAR RINCÓN AND ALEJANDRO ISTÚRIZ WERE RESPONSIBLE FOR DEVELOPING AND APPROVING PAYMENT PROPOSALS, TO BE FINALLY AUTHORIZED BY OFFICIAL A,” STATES THE DOCUMENT.
Although the identity of “Official A” has not been made public, it is known to the Grand Jury, it can be presumed that it refers to Javier Alvarado, president of Bariven, who held that position between 2011 and 2013, the same period during which this investigation was conducted by U.S. authorities.
During that time, Alvarado was the “direct boss” of both Alejandro Istúriz (presidential assistant) and César Rincón (vice president of International Purchases). Before becoming the president of the subsidiary, Javier Alvarado was appointed by the late president Hugo Chávez, with the approval of former oil czar Rafael Ramírez, to lead Electricidad de Caracas, overseeing the transition to state ownership in 2007, while allegedly orchestrating contracts for shell companies linked to his inner circle for significant purchases of goods and services.
Who’s Who in “The Executive Team”: Istúriz, Villalobos, and De León
Once Javier Alvarado took charge of Bariven, he appointed young Alejandro Istúriz, a friend of his son Javier Andrés Alvarado Pardi and his niece’s then-boyfriend, as his assistant. Thus, Javier Alvarado (the father), who is believed to be “Official A” in the U.S. indictment, had Alejandro Istúriz, aka “the louse,” as his key ally.
Javier Alvarado Pardi and Pedro Trebbau Lopez
In 2016, former deputy Robert Alcalá recalled during an investigation by the National Assembly’s Accountability Commission that Istúriz was responsible for awarding contracts exceeding $3 billion to businessmen within just over 10 months.
The federal accusation states that on November 24, 2011, Shiera sent a message from his Blackberry to Nervis Villalobos.
“BROTHER, THE LOUSE (ISTÚRIZ) NEVER FAILS. HE PUT MINE IN, AMOUNTING TO ABOUT “3.5M” (THREE MILLION AND A HALF DOLLARS) IN THE PROPOSAL AND “5” (FIVE MILLION DOLLARS) IN THE BALD ONE’S (ROBERTO RINCÓN) DEALS, PER WHAT WE DISCUSSED AT DINNER. SUPPORT THAT.” VILLALOBOS RESPONDED “THAT GUY IS GOOD.”
At the time of the investigation by U.S. authorities, Alejandro Istúriz and César Rincón were active public officials of high rank within Bariven. They were so “good” that the federal accusation claims that “the executive team made similar offers to both known and unknown suppliers to the Grand Jury,” besides Roberto Rincón and Abraham Shiera, hence this conspiracy could merely be an appendage of other bribery, corruption, and money laundering schemes.
Alejandro Istúriz Chiesa partying with friends
Shortly after leaving Bariven, Istúriz acquired several properties in Miami, including a luxurious condominium located at 2627 South, Bayshore Dr in Miami-Dade County, Florida, in the Grovernor residences.
Apartment 904 was purchased by Istúriz in mid-2013 for nearly $1.8 million. This detail was hidden behind companies registered in tax havens, but a property renovation (requiring notification to the county court) was signed by Alejandro Istúriz as the actual owner.
It is noteworthy that the company that carried out the renovation, as evidenced in Miami-Dade court records and having a namesake in Caracas, is owned by relatives very close to the owner of a company that has received numerous million-dollar contracts with Pdvsa and Electricidad de Caracas, since the government of the late president Hugo Chávez declared an electricity emergency and during Javier Alvarado’s management in both organizations.
The condominium was sold in 2016 after renovations for approximately $2.2 million, along with other properties in his name in U.S. territory.
Istúriz received $2,273,765 through these known operations, as the total amount from the transactions, in addition to the “gift” Abraham Shiera made of a reservation at a beach house in the exclusive area of Parrot Cay (identified by prosecutors as in the Bahamas, but geographically located in the Turks and Caicos Islands).