Switzerland froze $50 million of two Venezuelan «bolichicos» as it investigated potential money laundering and bribery. finews.com on why the duo, who later invested in a Swiss bank, never faced charges.
Two prominent Venezuelans linked to the PDVSA graft scheme – Alejandro Betancourt and Francisco Convit – and a third, unnamed person were investigated by Swiss prosecutors mid-2012. The trio was suspected of money laundering and bribery, according to the Swiss prosecutor.
The investigation was launched one year before the «bolichico» duo Betancourt (pictured below) and Convit took stakes of less than five percent in Banca Credinvest, as finews.com reported on Thursday. Switzerland's regulator sanctioned the Lugano-based private bank this week for its dealings with PDVSA, following a two-year investigation.
Swiss Millions Frozen
In June 2012, Swiss prosecutors froze a total of 46.2 million Swiss francs ($50.4 million) in funds held by Betancourt and Convit, who are cousins, and the third person at several Swiss banks, according to a document from the attorney general’s office seen by finews.com.
The investigation was prompted by Swiss banks including Deutsche's subsidiary as well as Sal. Oppenheim in Switzerland, who notified officials they suspected the money was illicit and had been used to pay bribes.
Probe Mothballed
Ten months later, in April of 2013, Swiss prosecutors dropped the investigation into Betancourt, Convit, and the third person, according to the document. The federal prosecutor on the case, Claire Daams, wrote that Switzerland would mothball the probe because it couldn’t establish probable cause.
Specifically, she cited a court decision which found that funds held by Betancourt and Convit were not criminal and that they had conducted themselves properly in connection with government contracts. The failure – likely in Venezuela – to recognize that a crime had taken place in turn crashed Switzerland’s case against the duo.
Epic Graft Scheme
The Swiss prosecutor office blacked out names and several other identifying characteristics such as which foreign country in the document. The prosecutor made the document available to finews.com in response to requests for information about why the 2013 probe into Betancourt and Convit didn't result in criminal charges.
As much as $1.5 trillion disappeared from PDVSA’s coffers between 2002 and 2014, according to «infodio», a website is devoted to chronicling the graft at Venezuela’s state-controlled oil and gas firm. Hundreds of millions in the epic graft scheme have landed in Swiss offshore accounts, as finews.com wrote last month.
Betancourt is reportedly an unnamed Venezuelan conspirators listed in a U.S. criminal complaint that details an alleged $1.2 billion graft scheme at PDVSA, and Convit was charged with money laundering by U.S. prosecutors in Miami two years ago.
Clients Of Julius Baer
The two belong to a group of well-connected, younger businessmen who grew rich under the regime of Hugo Chavez, often referred to as bolichicos. The cousins were reportedly clients of Matthias Krull, an ex-Julius Baer private banker who was sentenced to a ten-year prison term in 2018 (he is expected to turn state's witness).
Betancourt’s and Convit’s criminal defense lawyer in the 2013 investigation didn’t respond to a request for comment; two Swiss lawyers who recently represented Betancourt in a recent unsuccessful legal bid – which outed him as a Credinvest shareholder – didn’t respond either.
Swiss Investigation Stymied
Venezuela’s unwillingness to pursue alleged graft at PDVSA stymied Swiss efforts earlier this year to pursue corruption charges, as finews.com reported in September. This represents a common pattern in graft investigations, which rely heavily on foreign legal aid in bringing money launderers to book.
Venezuela, where President Nicolas Maduro is clinging to power, has little interest is recognizing the PDVSA graft or helping foreign prosecutors seeking to do so. Despite a constant escalation of U.S. sanctions against Venezuela, efforts to install opposition leader Juan Guaidó have foundered – as, apparently, has a U.S.-led criminal probe into PDVSA.
