New claims towards ex-Miami congressman employed by Venezuela

MIAMI (AP) — A former Miami congressman who signed a $50 million consulting contract with Venezuela’s socialist authorities not solely did no obvious work, but in addition channeled a big chunk of the cash to a yacht firm on behalf of a fugitive billionaire, based on new allegations in a civil swimsuit.

The accusations towards former Congressman David Rivera are available a brand new submitting Friday in New York federal court docket by opponents of Venezuelan President Nicolas Maduro who now management the US-based associates of the South American nation’s state oil firm.

Rivera’s Interamerican Consulting what south in 2020 by PDV USA — a Delaware-based affiliate of Venezuelan-owned Citgo. It alleges Rivera carried out no work for the $50 million contract he signed in 2017 for 3 months of “strategic consulting” meant to construct bridges with key US stakeholders.

The identical contract has been the topic of an ongoing felony investigation by federal prosecutors in Miami wanting into, amongst different issues, whether or not Rivera didn’t register as a overseas lobbyist as required bv legislation.

Rivera has not been charged with any crime, however the brand new filings give an in depth have a look at his dealings with Venezuela’s state-run oil trade and the way he allegedly spent the cash he acquired.

Across the identical time Rivera was employed, Maduro’s authorities had launched a allure offensive to curry favor with the Trump administration. It initially prevented outright criticism of the brand new US chief and even donated $500,000 to his inaugural committee by means of Citgo.

The brand new court docket submitting relies on proof solely not too long ago uncovered by PDV USA’s attorneys, together with 18,000 textual content and WhatsApp messages from Rivera’s telephone and statements he made throughout a two-day deposition in July.

Rivera acquired solely $15 million of the unique quantity, however the brand new submitting says he spent a part of that on unexplained funds to a convicted drug trafficker and to an organization managing yachts on behalf of a Venezuelan TV magnate needed for arrest by US authorities.

“Mr. Rivera by no means supplied any companies to Citgo and, it seems, by no means meant to take action,” based on the submitting by PDV USA. “As a substitute, the true function of the settlement was to cowl up illicit transactions.”

Rivera didn’t reply to a request for remark, however he has maintained his innocence and has countersued PDV USA alleging breach of contract and unjust enrichment for his failure to pay $30 million he says he’s nonetheless owed.

In keeping with the submitting, in a single change of messages with Raul Gorrin — a Maduro insider who owns Venezuela’s largest personal TV community — Rivera mentioned making an attempt to arrange a gathering between Venezuela’s overseas minister and executives from the US oil firm Exxon.

The brand new submitting cites a message during which Rivera and Gorrin texted each other that “the live performance ticket is $15, not 20, as we stated final evening” — wording PDV USA’s attorneys name a “clear reference to a bribe.”

“At deposition, Mr. Rivera was unable to elucidate what this textual content message meant, and examined that he didn’t bear in mind attending any concert events at the moment,” PDV USA said in its submitting. It didn’t say who a bribe may need been meant for and the assembly by no means befell.

Rivera had requested the court docket to protect his communications with Gorrin, who the US alleges was the mastermind of a conspiracy to siphon $1.2 billion from PDVSA — Venezuela’s state oil firm. Gorrin is a lawyer, although not licensed to follow in the US, and a choose in June dominated that Rivera’s communications with him didn’t meet the brink for attorney-client privilege and should be handed over as a part of what’s referred to as discovery.

Of the $15 million that Rivera acquired, about 75% was transferred to different people, based on the brand new submitting. Round $3.75 million was transferred to a Miami firm, Interglobal Yacht Administration. Rivera claimed the cash was an expense for companies below the contract. PDV USA alleges as an alternative it was used to pay for upkeep on one in every of Gorrin’s superyachts.

Comparable quantities went to Esther Nuhfer, who’s described as a longtime political affiliate of Rivera, in addition to Hugo Perera, a Miami developer who pleaded responsible to tax fraud in a large drug-smuggling case within the Nineties towards the scary Cali Cartel.

Rivera testified that the funds had been referral charges and for help he acquired as a part of the consulting contract, based on PDV USA.’s account. However the brand new anti-Maduro administration claims PDV USA by no means gave Rivera permission to outsource the work, as was expressly required by the consulting settlement.

To justify the big funds, PDV USA alleges Rivera created “phony contracts” backdated to March 20, 2017 — the day earlier than the consulting settlement took impact.

Interglobal declined to signal the backdated contract, saying it had not carried out that type of subcontractor service.

“In brief, PDV USA acquired nothing from Interamerican in change for making funds of $15 million,” the plaintiffs allege. “Most of that sum was transferred to 3rd events which can be both induced fugitives from justice or below felony investigation in reference to these funds.”

The submitting additionally alleges that different funds, deducted as bills by Interamerican, had been in actuality moved between accounts managed by Rivera. The brand new filings allege that Rivera’s personal accountant examined in a deposition after assembly with felony investigators from the Inner Income Service that he believed his consumer had dedicated tax fraud.

The consulting contract had all of the hallmarks of a sham, based on PDV USA. Rivera’s Interamerican made simply $9,500 within the yr previous to signing the multimillion-dollar deal.

The lawsuit claims the corporate then managed by Maduro loyalists employed Interamerican out of the blue, with out due diligence, and that Rivera by no means met in individual with anybody from Citgo or PDV USA whereas supposedly engaged on its behalf. As a substitute, he filed two “poor and incoherent” progress stories of the seven he was required to submit.

“The written report is known as any proof that Interamerican carried out any of the contracted companies,” PDV USA argues within the new filings. “There may be not a single e-mail, a single PowerPoint presentation, a single define, a single memorandum, a single calendar entry, or the rest suggesting that Interamerican ever carried out any of the companies.”

Rivera, a Republican, served a single time period in Congress, in 2011-2013, and through that point honored Venezuelan exiles fleeing socialist rule and cosponsored laws searching for to withhold funding from the Group of American States till it confronted then President Hugo Chávez for allegedly violating Venezuela’s structure.

Whereas serving as a state legislator, he shared a home in Tallahassee with now-Sen. Marco Rubio, who was the state Home speaker on the time. Rivera has been embroiled in a number of election-related controversies since then, together with orchestrating the stealth funding of an obscure Democratic candidate to tackle his essential rival in a South Florida congressional race. Final yr, he was discovered $456,000 for violating marketing campaign finance legal guidelines in connection to that plot.


Observe Goodman on Twitter: @APJoshGoodman

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