Judge convicts ‘Citgo 6,’ orders prison
Oil execs found guilty of corruption charges in Venezuela court
Six Citgo executives held in Venezuela since 2017 were sentenced to more than eight years in prison after a judge found them guilty of corruption charges on Thanksgiving Day.
Maria Elena Cardenas— the wife of Gustavo Cardenas, one of the detained executives of the Houston refiner — had just finished Thanksgiving dinner with family at her Katy home when a defense attorney called her with the disheartening news. She couldn’t bear to tell her son, Sergio, who has special needs.
“I’m in shock,” Cardenas said Thursday night. “This is the Venezuelan government’s gift for Thanksgiving. I’m thankful my husband is still alive, but with this decision, they’re condemning not only him but our whole family. This is a nightmare.”
Citgo, which moved its headquarters to Houston about15 years ago, is the U.S. subsidiary of Venezuela’s state oil company, PDVSA. Three years ago, Gustavo Cardenas and five other Citgo executives were lured to Venezuela for a business meeting and arrested by the government of President Nicolas Maduro on charges of corruption and embezzlement. Most of the so-called Citgo Six are U.S. citizens living in Texas and Louisiana.
Their arrests came amid a purge of PDVSA’s leadership by Maduro’s government as Venezuela’s economy collapsed and relations between Caracas and Washington fell apart.
Citgo, one of PDVSA’s most valuable assets, has played a leading role in the power struggle between Maduro, opposition leader Juan Guaido and the Trump administration. Citgo is controlled by aboard appointed by Guaido, who is recognized by the United States and some 60 other countries as the legitimate leader of Venezuela.
Gustavo and four other executives were sentenced to prison
terms of eight years and 10 months, while the sixth received a 13-year sentence. Defense attorney Jesus Loreto told the Associated Press that five men with lesser terms could be released on parole in a couple of years.
Citgo in a statement Thursday night said it hopes the Venezuelan government will heed the U.S. government’s request and release its employees. Venezuelan officials could not be immediately reached for comment.
“While we do not have firsthand knowledge of these reported convictions, we are distressed to read about this outcome,” Citgo said in an email. “We continue to pray for them and their families and hope for a resolution that will lead to their prompt release.”
Loreto called the trial’s result “bad news” and said the verdict was based on little or no proof presented by government prosecutors.
“They don’t have any evidence to hold these guys accountable for any wrongdoing,” Loreto told the Associated Press. “They ought to be released.”
Attorney Maria Alejandra Poleo, who helped represent three of the men, told the AP: “Of course, the defense will appeal the decision to the court.”
Cardenas and the five other Citgo executives were summoned to PDVSA’s headquarters for what they were told was a budget meeting on Nov. 21, 2017. Acorporate jet shuttled them to Caracas, and they were told they would be home for Thanksgiving.
Instead, military intelligence officers swarmed into the boardroom and hauled them off to jail.
Their trial started four months ago, and closing arguments took place Thursday. The judge, who was expected to make her decision known within twoweeks, immediately announced her verdict.
The men accused along with Cardenas are Tomeu Vadell, Jorge
Toledo and brothers Jose Luis and Alirio Zambrano, all U.S. citizens. Jose Pereira, a permanent resident, received the longest sentence.
In addition to corruption, the men were also charged with embezzlement stemming from a never-executed proposal to refinance some $4 billion in Citgo bonds by offering a 50 percent stake in the company as collateral. Maduro at the time accused them of “treason.”
They all pleaded innocent. News media and human rights groups were denied access to the hearings, held in an empty hallway of a downtown Caracas court.
The office of Venezuela’s chief prosecutor told the Associated Press prior to Thursday’s verdict that investigators found “serious evidence” that corroborated financial crimes that could be potentially damaging to the state-run company.
“The Citgo case has developed normally during all the stages established by the Venezuelan criminal process,” the statement to the AP said.
Former New Mexico Gov. Bill Richardson, who has negotiated the release of other Americans held by hostile governments, traveled to Caracas in July and met with Maduro. He didn’t win their freedom, but days later two of the Citgo Six — Cardenas and Toledo — were freed from jail and put in house detention.
Richardson told the Associated Press that conversations with the Venezuelan government continue despite his meeting with Maduro being “a little stormy.” He said he believes there is an opening tied to President-elect Joe Biden and a desire by Maduro to improve relations with Washington.
It is not clear what approach Biden will take toward Maduro. Trump aggressively pressed to remove Maduro through sweeping financial sanctions, and the U.S. Justice Department has indicted Maduro as a “narcoterrorist,” offering a $15 million reward for his arrest.
Maria Cardenas, who has been waiting for her husband’s release for the past three years, said she is trying to keep her hopes up that further negotiations can help the Venezuelan government rethink its decision. But it’s difficult, she said.
Gustavo Cardenas, whose health had deteriorated in jail, was recovering under house arrest, his wife said. He was eating better and had access to more sunlight. He called her on Thanksgiving morning, as he does every day, to tell her he was going to court.
Before his arrest, Gustavo was usually home in Katy on Thanksgiving, cooking his special dish of sweet potato topped with cheese.
“I just told him, ‘ God bless you,’ ” Cardenas said. “Only a miracle can bring my husband home. We really want him back. This is torture for us.”