An enforcement proceeding at a tiny Ticino lender brings to light a surprising shareholder who is reportedly involved in the PDVSA graft scandal.

Alejandro Betancourt is a minority shareholder in Lugano-based Banca Credinvest, Fulvio Pelli, a lawyer for the Swiss bank confirmed to finews.com. Pelli said Betancourt owns less than five percent of the Swiss bank, which manages $2.31 billion in assets and is in the midst of an enforcement proceeding over potential dealings in PDVSA.

Betancourt is one of a raft of so-called Bolichicos, or well-connected, younger businessmen who had grown rich under the regime of Hugo Chavez. The 40-year-old is reportedly an unnamed Venezuelan conspirators listed in a U.S. criminal complaint that details an alleged $1.5 billion graft scheme at PDVSA, the «Miami Herald» reported.

Ironic Fight Vs Finma

Ironically, the Swiss investigation into Banca Credinvest is what outed Betancourt as a shareholder of the bank: he fought the Swiss financial regulator, Finma, to be made party to a PDVSA probe into the bank. The move appears to be a bid to gain access to Credinvest’s regulatory file, according to «infodio» and «Gotham City» (behind paywall, in French).

Both reports cite a Swiss federal court ruling (in Italian) dated September 15 and made public this week. The judgement makes clear that Betancourt isn't accused of wrong-doing in Switzerland – in fact, the court cites this as the reason for denying his request to be made a party to the investigation at Banca Credinvest.

Swiss-Backed Holding

Betancourt's Swiss lawyers on the ruling, Peter Nobel and Christoph Peter, didn’t comment. His American attorney has previously said Betancourt «denies any wrongdoing» in connection with PDVSA. finews.com couldn't reach Betancourt, who reportedly lives in London and Madrid.

Needless to say, a shareholder reportedly in the crosshairs of U.S. prosecutors over alleged money laundering is not a great look for a Swiss bank – even if Betancourt is a minor investor and apparently didn't take any influence over Banca Credinvest. Swiss officials vetted Betancourt's investment in 2013, Pelli, the bank's lawyer said. Finma didn't comment.

Bolibourgeoisie Lending

In 2003, Betancourt founded Derwick, a Venezuelan energy company. His cousin, Francisco Convit, is a board director at Derwick – and was accused at the same time as ex-Julius Baer banker Matthias Krull in 2018.

U.S. prosecutors accuse «Conspirator 2» – reported to be Betancourt – of being part of group which received hundreds of millions late in 2014 from PDVSA as payment on a loan. The Bolibourgeoisie or Boliboys are accused in a U.S. affadavit of lending bolivars to PDVSA through a shell company.

They are accused of being repaid in euros at a more favorable exchange rate set by the Venezuelan government.  This inflated the loan's value by more than 14 times its original value, to about $600 million, prosecutors allege. 

Politically Flexible 

Betancourt's financial interests are disparate: he owns several retail brands, and in 2015 was a major shareholder in a Canadian company with considerable Colombian oil holdings. He is politically flexible: «Reuters» reported that Betancourt covertly helped bankroll Juan Guaidó as Venezuelan opposition leader.

The U.S. and and dozens other countries have recognized Guaidó as interim president, but Nicolas Maduro remains in power. Betancourt hoped his backing of Guaidó would curry favor with Washington in connection with the money laundering and bribery case, the outlet reported.