An ex-Swiss banker won a record reduction in his sentence in a money laundering case linked to Venezuela’s state-backed oil firm. He had been cooperating with U.S. authorities for nearly three years.
Ex-Julius Baer banker Matthias Krull had his prison sentence reduced to three and a half years from ten, after helping authorities in their investigation against PDVSA, according to a «Miami Herald» report published overnight.
A key Latin America private banker at Julius Baer until mid-2018, Krull was in on Venezuelan money laundering schemes around the world. The 47-year-old was arrested in July 2018 as part of a U.S. sweep against PDVSA corruption. Now, Krull has won the biggest sentence reduction ever issued by a U.S. federal judge.
Disastrous For Julius Baer
He did so by leading U.S. prosecutors back to Europe and Switzerland, where much of funds were laundered, as well as helping them gain plea deals from two other defendants, according to the report. Initially believed to be a ringleader, Krull actually wasn't, prosecutors found – though he was well-connected as a banker.
Prosecutors noted that Krull hadn't enriched himself in what they described as a supporting role. He was nevertheless ordered to pay $600,000. It remains unclear when Krull, who has been free since 2018, will begin his jail sentence, as the start date has been postponed repeatedly.
Krull declined to comment to the newspaper. For Julius Baer, PDVSA has been disastrous: the Swiss bank last year was heavily sanctioned by its home regulator for rinsing money, after exiting Venezuela altogether.
