Venezuela's former treasurer took $1 billion US in bribes, newly unsealed court documents reveal

Venezuela's former national treasureradmitted receiving over $1 billion USin bribes as part of illicitforeign currency operations that involved a local televisionmogul now indicted in U.S. courts, according to courtdocuments unsealed on Tuesday.

Alejandro Andrade, who ran the treasury for four years underlate socialist leader Hugo Chavez, received properties, platinumand gold Rolex watches and Mercedes Benz vehicles thanks to thescheme, the documents from the Southern District of Florida say.

He did so with the help of conspirators, including RaulGorrin, owner of television station Globovision, who has beencharged with paying bribes to Andrade and others as well ashelping to launder the payments, according to the documents unsealedthis week.

The cases are part of a broad effort by U.S. federalprosecutors to crack down on the use of the U.S. financialsystem to launder proceeds from rampant corruption in thecrisis-stricken country that is suffering from hyperinflation.

Venezuelan President Nicolas Maduro has said little about criminalproceedings against former officials in his countrybut says theUnited States is seeking to undermine his government throughfinancial sanctions.

The Venezuelan Information Ministry did not immediatelyreply to a request for comment.

Horses, homes, cars as kickbacks

Both Andrade, who was treasurer from 2007 to 2011, andGorrin made vast sums taking advantage of Venezuela's exchangecontrols, according to the documents.

U.S. prosecutors also announced a guilty plea by GabrielJimenez, a Venezuelan citizen who admitted to conspiring withGorrin and others to acquire Dominican Republic-based BancoPeravia and use it to help launder bribe money.

Reuters was unable to obtain comment from Andrade orJimenez. Gorrin's defence attorney, Howard Srebnick, did notimmediately respond to a request for comment.

Since 2003, the exchange control system has sold heavilysubsidized dollars through state currency agencies or governmentauctions. But dollars on the black market have fetched at leastdouble and sometimes 10 times more, allowing the well-connectedto buy cut-rate dollars and resell them at a huge profit.

Andrade received bribes from brokerages to selldollar-denominated bonds on behalf of the government, thedocuments say.

The brokerages kept part of the proceeds and returnedkickbacks to him by buying him items including 17 horses, 35luxury watches, 12 cars and six South Florida homes, accordingto a list of the property he agreed to relinquish to U.S.authorities.

He also handed over nine bank accounts in the United Statesand Switzerland, the documents say.

Gorrinfacilitated $150M in bribes

Andrade in late 2017 agreed to plead guilty to one count ofviolating the U.S. Foreign Corrupt Practices Act and this monthagreed to hand over the assets, according to the documents,which were under seal until Tuesday.

Gorrin, who also owns insurance firm Seguros La Vitalicia,was charged in an indictment unsealed on Monday with violatingU.S. anti-corruption laws in efforts to win contracts to carryout currency exchange operations for the government.

Between 2008 and 2017, Gorrin facilitated more than $150million in bribe payments to officials in Venezuela's treasuryfor access to currency deals, with funds wired from Swiss bankaccounts to accounts in Florida, U.S. prosecutors said.

A U.S. Department of Justice press release on Tuesday saidthat Gorrin paid bribes to Andrade.

Neither Globovision nor La Vitalicia responded to requestsfor comment. Gorrin's whereabouts were not immediately clear. Hefaces a maximum penalty of 45 years in prison if found guilty.

Gorrin allegedly also bought jets, yachts, "champion horses"and luxury watches in Florida and Texas for a governmentofficial as a bribe, according to the indictment.

A biography on Gorrin's personal website describes him as asalsa-loving lawyer and businessman. He bought a 25 per centstake in an insurer that would later be known as La Vitalicia in2008, 10 years after Chavez came to power.

Globovision, once a virulently anti-government station,overhauled coverage and softened criticism of Chavez'ssuccessor, Nicolas Maduro, after Gorrin purchased the channel in2013, reporters said at the time.