Krull Proffer
Krull Proffer
Krull Proffer
M ATTH IA S K RU LL
D efendant.
FA CT UA T,PR O FFER
The U nited States ofA m edca and M atthias KRU LL stipulate thatif this m atter w ere to
proceed to trial,the G overnm entw ould prove the stated factsbeyond a reasonable doubt:
Introduction
Abraham Edgardo Ortega,Gustavo A dolfo H ernandez Fded,M arcelo Federico Gutierrez'A costa
Lara, and M ado Emique Bonilla Vallera and others, conspired to engage in m onetary
foreign com m erce to m anage and prom ote both their m oney laundering activities and violations
A t a1l relevant tim es,V enezuela had a foreign-currency exchange system under
whichthegovernmentwillexchangelocalcurrency(Bolivars)atafixedrateforU.S.Dollars.The
fixed exchangeratehasbeen wellbelow thetrue econom icrateby asubstantialfactorforseveral
yCarS.
m illion Bolivars atthe true econom ic rate.Then,ifthatindividualhad access to the governm ent
fixed rate, he could convert that sam e'600 m illion Bolivars into 100 m illion U .S. D ollars.
D ollars.
The difference between the fixed rate and the true econom ic rate creates
opporturlity for fraud and abuse, where V enezuelan officials engage in these foreir currency
6. These com zpt foreign currency exchange schem es occlzr in significant am otm t
witllinVenezuelanstate-ownedoilcompany,PetréleosdeVenezuela,S.A.(PDVSA).PDVSA is
Venemzela'sprimary sourceofincome and foreign currency (namely,U.S.DollarsandEuros),
and serves asthe solzrce offoreign currency used to fund cornzptforeign exchange em bezzlem ent
schem es.
Case 1:18-cr-20682-CMA Document 30 Entered on FLSD Docket 08/22/2018 Page 3 of 9
launder and engage in m onetary transactions w ith the proceeds of a con-upt currency exchange
schem e w ith PD V SA .
respectto the intem ationalbanking system and are aw are ofbanks'generaldue diligenceand anti-
1.
moneylatmdedngpractices,includingknow-your-customer(KYC)requirements.
Im portantly, for one party to w ire fnnds to a third party, there m ust be som e
legitimatebusinessjustificationprovidedtothebank;forinstance,apaymentforthepurchaseof
realestateorequipment.M oreover,abank willask fordoclzmentssupporting thejustification,
which---depending on the transaction-r-can be difficultto m anufacture;for instance,a bank m ay
be able to verify w hether a supposed realestate transaction took place.Tllis vetitk ation poses a
problem for m oney laundering kansactions in w hich large sum s of crim inalproceeds m ustbe
exorbitantexpenditures,forinstance.
mightwire30millionU.S.Dollarstoathirdpartywith thejustificationthattheamountisaloan
to the third party,supported by a 30 m illion U .S.Dollarprom issory note due atsom e pointin the
futttre,which neither party acm ally intendsto honor.Forthe bank,ascertaining the tnze intentof
com plicitm oney m anagers,brokerage firm s,banks,and realestate investm entfilnnsin the United
schem e benetm ing Eaton G lobal. The exchange schem e w as disguised as a tf nancing''
arrangem entusing the follow ing three docum entsin an artlessattem ptto hide the em bezzlem ent:
and R antor CapitalC.A .,a Venezuelan shellcom pany,in which Rantor agreed to
Rantor and Eaton Global,in w hich Rantor assigns its dghts as PD V SA 'S creditor
is given the rightto'cancelthe debtwithin 180 daysby paying 600 m illion U .S.
Dollars;and
4
Case 1:18-cr-20682-CMA Document 30 Entered on FLSD Docket 08/22/2018 Page 5 of 9
whichEatonGlobalinformsPDVSA (i.e.,VenezuelanOfficial1)oftheassignment
and suggests thatPDV SA repay the 7.2 billion Bolivarloan in the Euro equivalent
(wortharound35millionElzros)fornomorethanafew months.
16. V eneztzelan O fficial1,and others,facilitated thisschem e in exchange forreceiving
ldckbacks fr
'om the proceeds.Tllis bribery ofV enezuelan O ftk ial1 violated rm tonly V enezuelan
law ,butalso the Foreir Com zptPractices A ctbecause one orm ore m em bers of the conspiracy
engaged in com zptactsfrom w ithin the territory ofthe United States.A ta1lrelevanttim es:
officialw asan offense againstthe nation ofV enezuela,under m ore than oneprovision of
V enezuelan law .
in theterritol'y oftheU nited States,to ftzrtherapaym entorprom ise ofapaym entto aforeign
paid to Eaton Globalare theproceedsofspecified unlaw fulactivity asdefned in Title 18,U nited
StatesCode,Section 1956(c)(7).
Case 1:18-cr-20682-CMA Document 30 Entered on FLSD Docket 08/22/2018 Page 6 of 9
18. The m em bers ofthe conspiracy areed to splitthe netproceeds ofthe PDVSA
(CS),whowasinstnzctedtodeliverthefundstoCnnneloUrdanetaAqui,Abraham Ortega,
Ktconspirators 1 and 3,''and V enezuelan O fticial1,
'and
ofthe conspiracy included an array ofstraw ow ners,bankers,m oney m anagers whose role w asto
he w as a M anaging D irector and V ice Chairm an.K RULL'S role w as attracting pdvate banking
6
Case 1:18-cr-20682-CMA Document 30 Entered on FLSD Docket 08/22/2018 Page 7 of 9
25. Initially,Conspirator 7 intkorm ed K RULL about a tranche ofm oney w orth about
600 m illion U .S. D ollars generated from foreign exchange contracts. Conspirator 7 stated he
needed a solution form oving and depositing the funds. KRU LL asked Conspirator7 forthe solzrce
and Rantorloan contact,w llich doubled the initialcreditline from 7.2 to 14 billion Bolivars.The
am endm ent w as dated M ay 25, 2015 and specifically incorporated the initial PD V SA loan
contr
1
act.
.
tranche ofm oney worth about200 million U.S.Dollars. Conspirator7 stated thatheneeded an
urgentsolution form oving these funds,and thathew anted ICRU LL to m eetthe ow nerofthe funds.
BonillaVallera(formerlyreferredtoasççconspirator8'')andEfonspirator10,''bothasthepeople
who Conspirator 7 t'represents.''
W hen K RU LL answ ered GGno7''Conspirator 7 explained that tçM ario''represents Et os Cham os''
30. Copspirator7explainedtoIQRULLthathe(Conspirator7)wasdispleasedwiththe
previouseffortsofJose Vincente Amparan Croquerand theGGportugilese guy''(Hugo Gois)to
managethemoney.KRULL agreedtoassistandjointheconspiracytolaunderthefunds.
K RULL m etw ith M ario Endque Bonilla V allera and Conspirator 10 on several
occasions in an effort to assist them in receiving the PD V SA ftm ds as straw owners for the
G<cham os,''including as pa14 of a proposed plan to use a m oney laundedng structure w ith Global
SecudtiesA dvisors and Gustavo Hpernandez Fderiin M iam i,Florida which included deposits to
be m ade to U .S.FinancialInstitution 1.
in the Southern Districtof Flodda,where Conspirator 7 was renovating a condom izlium .D uring
w ith the necessary docum entsto m ove the ftm ds forthe ddtaos Cham os.''
another co= ption schem e involving a ltigh-levelV eneztzelan oftk ialfrom Conspirator 7's ow n
8
Case 1:18-cr-20682-CMA Document 30 Entered on FLSD Docket 08/22/2018 Page 9 of 9
and that the funds he w as attem pting to conceal and transactin w ere the proceeds of crim inal
Date: 7w t By.
FR A CISCO R.M A ERAL
M ICHA EL B .N A DLER
A SSISTA N T U N ITED STA TES A TTORN EY S
oate,+2wplï%C By: ,
'
x / ;
DA V S.JOHN SO
A SS TA N T CH IEF
GW DO LY N A .STA M PER
TRIAL A TTO RN EY
Date: t %. h%
O SCA A G O DRI
A TTORN E FEN D
Date:% =* hes
M ATTHIAS ULL
DEFEN D A T