U.S. Charges 10 Individuals for Evading Venezuela Sanctions Through Aircraft Parts Scheme

The U.S. Department of Justice has unsealed an indictment charging 10 individuals with conspiring to evade sanctions imposed on Venezuela by illegally procuring U.S. aircraft parts, including Honeywell engines, for the state-owned oil company Petróleos de Venezuela, S.A. (PDVSA). The defendants allegedly concealed from U.S. companies that the goods were destined for Venezuela and PDVSA by exporting them to third parties in other countries, such as Novax Group SA in Costa Rica and Aerofalcon SL in Spain.

According to the indictment, the scheme allowed PDVSA to maintain its aircraft fleet and continue operations despite the U.S. sanctions imposed on the company in January 2019. The defendants are accused of using front companies and falsifying documentation to hide the true destination of the aircraft parts. The U.S. Department of Commerce has added Novax and Aerofalcon to its list of companies engaging in activities contrary to U.S. national security and foreign policy interests.

Why this matters: The charges highlight the U.S. government's ongoing efforts to enforce sanctions against Venezuela and crack down on schemes to circumvent them. The case also underscores the challenges in preventing the illicit procurement of U.S. goods by sanctioned entities through complex international networks.

The defendants are charged with conspiring to violate the International Economic Emergency Powers Act (IEEPA), which carries a maximum penalty of 20 years in prison. Some defendants also face additional charges of submitting false or misleading export information and smuggling goods. One of the 10 individuals involved, George Semerene, who served as PDVSA's head of logistics, procurement and warehousing, was arrested upon arrival at Miami International Airport last week.

The case is being investigated by the Department of Commerce's Bureau of Industry and Security and prosecuted by the Justice Department's National Security Division. "The enforcement of U.S. export laws is critical to protecting our national security and foreign policy interests," said Special Agent in Charge Ariel Joshua Leinwand of the Bureau of Industry and Security in a statement. The arrests and charges are part of the U.S. Justice Department's broader efforts to enforce sanctions against Venezuela and prevent the illicit acquisition of U.S. goods by PDVSA and other sanctioned entities in the country.

Key Takeaways

• 10 individuals charged for conspiring to evade sanctions on Venezuela
• Defendants procured U.S. aircraft parts for Venezuela's state-owned oil company PDVSA
• Defendants used front companies and falsified documents to hide the true destination
• Defendants face up to 20 years in prison for violating the IEEPA
• U.S. cracks down on schemes to circumvent sanctions on Venezuela