Five former Venezuelan government officials are facing federal charges in Houston over a sprawling international money laundering scheme tied to billions in bribes from Petroleos de Venezuela S.A. (PDVSA). The defendants — Luis Carlos De Leon Perez, 41, Nervis Gerardo Villalobos Cardenas, 50, Cesar David Rincon Godoy, 50, Rafael Ernesto Reiter Munoz, 39, and Alejandro Isturiz Chiesa, 33 — are accused of operating as a corrupt “management team” that exploited their power to sell energy contracts in exchange for kickbacks funneled through U.S. financial institutions.
The 20-count indictment, unsealed today in the Southern District of Texas, charges De Leon, Villalobos, Reiter, and Isturiz with one count of conspiracy to commit money laundering, while Cesar Rincon faces two counts. De Leon, Cesar Rincon, and Reiter are each charged with four counts of money laundering; Villalobos with one; and Isturiz with five. De Leon and Villalobos are also charged with conspiracy to violate the Foreign Corrupt Practices Act (FCPA), as they allegedly coordinated bribes with U.S.-based vendors seeking lucrative PDVSA contracts.
Four of the defendants were arrested in Spain in October 2017 following U.S. warrants. Cesar Rincon was extradited to Houston on Feb. 9, 2018, and appeared before U.S. Magistrate Judge Stephen Smith. De Leon, Villalobos, and Reiter remain in Spanish custody awaiting extradition. Isturiz is still at large, with an active arrest warrant. All five are Venezuelan citizens; De Leon also holds U.S. citizenship.
According to the DOJ, the scheme involved soliciting bribes from PDVSA vendors — including U.S. residents who owned and operated American-incorporated businesses — in exchange for influence over contract awards. The illicit funds, investigators say, were laundered through shell companies, U.S. bank accounts, and luxury real estate, exploiting the openness of the American financial system to hide the origins of hundreds of millions in stolen public assets.
“Effective deterrence of corruption requires prosecution of culpable individuals, wherever those individuals are located,” said U.S. Attorney Ryan K. Patrick. “We will continue to enforce the FCPA against those that avail themselves of the privileges of the American marketplace.” Acting Assistant Attorney General John P. Cronan added, “Corruption threatens economic and political stability… if you launder your ill-gotten gains through the United States, you will be prosecuted.”
Special Agent in Charge Mark Dawson of HSI Houston emphasized the global reach of the investigation: “This case is an example of what can be accomplished when international law enforcement agencies work together to thwart complex cross-border crimes.” The probe underscores federal authorities’ relentless focus on rooting out public corruption and using U.S. jurisdiction to target foreign officials who funnel dirty money into domestic markets.
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Key Facts
- State: Texas
- Agency: DOJ USAO
- Category: Public Corruption
- Source: Official Source ↗
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