$195M CORRUPTION TRAIL: MADURO ALLY PLEADS GUILTY IN US MONEY-LAUNDERING CASE

Venezuelan businessman Alex Saab has pleaded guilty to money laundering over a $195 million corruption scheme, admitting to extracting illicit proceeds from government contracts and agreeing to forfeit the money and cooperate with US investigators.

Saab, a close associate of former Venezuelan President Nicolás Maduro, pleaded guilty in a US federal court to one count linked to a bribery scheme involving contracts to supply food and medicine under Venezuela’s CLAP programme.

Under the plea agreement, Saab agreed to forfeit $195 million in criminal proceeds and cooperate with ongoing federal investigations. The money laundering charge carries a maximum sentence of 20 years, although prosecutors agreed to seek a sentence at the lower end of the applicable range and could seek further reductions depending on the value of his cooperation.

According to the statement of facts accompanying the plea, Saab admitted skimming at least $195 million from six contracts awarded to companies he controlled to import food and medicine.

The scheme allegedly involved high-level Venezuelan officials and included $17 million in kickbacks to former Tachira Governor Jose Gregorio Vielma Mora. Prosecutors said contracts were secured through bribery and that payments were concealed using falsified shipping records, shell companies and bank accounts across multiple jurisdictions.

The case highlights the compliance risks created when politically connected individuals control government contracts while using complex corporate and banking structures to move proceeds across borders.

Investigators also traced payments involving Venezuelan oil, gold and other natural resources, underscoring the role of commodities and alternative payment channels in sanctions-sensitive financial networks.

Saab’s cooperation could provide US investigators with additional information about the wider corruption network, although the precise scope and consequences of that cooperation remain to be established.