The Trump administration has enlisted Venezuelan businessman Alejandro Betancourt to help broker a major US oil deal with Venezuela, despite his long-running links to a US investigation into an alleged billion-dollar money laundering scheme involving Venezuela’s state oil company PDVSA, according to people familiar with the matter.Federal prosecutors in Miami recently quietly closed their investigation into Betancourt after officials in the Trump administration sought to clear the way for him to work on the Venezuela oil deal, CNN reported, citing sources. The move was part of efforts by Secretary of State Marco Rubio and other administration officials to use Betancourt’s business ties in Venezuela to help negotiate the agreement.The Justice Department disputed that then-Deputy Attorney General Todd Blanche personally intervened in the case, calling the claim “a complete fabrication.” A department spokesperson said Blanche had never discussed the case with prosecutors or directed them to close it.
What was the investigation?
Betancourt, a wealthy Venezuelan businessman who built oil-related businesses under former presidents Hugo Chavez and Nicolas Maduro, was investigated as part of a broader US probe into the alleged embezzlement and laundering of funds from PDVSA.The investigation, known as “Operation Money Flight”, uncovered what US authorities described as an international conspiracy to launder hundreds of millions of dollars through Miami real estate, bank accounts and other investment schemes.Betancourt was never charged with a crime. However, US investigators identified him as an unnamed co-conspirator in at least one transaction linked to the case, according to people familiar with the investigation.His lawyer, Jon Sale, has denied any wrongdoing, saying Betancourt was involved in legitimate business transactions with his cousins and had no knowledge that money involved in those deals came from bribery or PDVSA.The investigation was not limited to the US. Betancourt has also faced legal scrutiny in Europe. He was arrested in London last year on a Swiss warrant, and Switzerland earlier this year included him among people whose assets were frozen following Maduro’s arrest.
What has changed now?
Betancourt’s position has shifted as the Trump administration seeks a larger role for US companies in Venezuela’s oil industry.After US forces captured Maduro in January and brought him to New York to face drug-trafficking charges, US officials contacted Betancourt and sought his help in opening discussions with Venezuelan officials who remained in power, including Vice President Delcy Rodriguez, according to people familiar with the matter.The administration subsequently moved to remove obstacles to Betancourt’s involvement. The US investigation was closed, according to two people briefed on the matter, while US officials also sought cooperation from Swiss authorities over warrants that had restricted his international travel.The State Department also issued Betancourt visas allowing him to enter the US several times as negotiations over the oil deal progressed, according to a person familiar with the matter.
What is the oil deal?
Betancourt has since emerged as a key partner in a US-backed plan for Venezuela’s oil industry.President Donald Trump has described the venture as a historic oil agreement that would give the United States access to Venezuela’s vast petroleum reserves. The White House said the deal is intended to attract major investment into Venezuela’s oil sector and help revive an industry that has suffered from years of economic crisis and underinvestment.A senior US official defended the administration’s decision to work with Betancourt, saying he had been vetted and was not facing charges in the United States.Rubio also defended the arrangement, pointing to Betancourt’s previous ties to the Venezuelan opposition and his experience operating in the country’s oil industry.“We thoroughly investigate what we know within our system,” Rubio said, adding that there was no US investigation against Betancourt.The arrangement has nevertheless drawn scrutiny because Betancourt’s business career was built through contracts with the Venezuelan government and because he was investigated in connection with the alleged laundering of money stolen from PDVSA.Rubio acknowledged the potential perception problem but argued that working with Betancourt could ultimately benefit Venezuela.“But now we have an opportunity to do something that I believe is going to benefit everyone,” Rubio said. “But specifically, in the long term, benefit the Venezuelan people.”
