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 | Enforcement Action Dataset

Enforcement Action Dataset

 
United States of America v. Lennys Rangel · Multiple Parties' Involvement with PDVSA in Venezuela between 2008 and 2017

Case Information

United States of America v. Lennys Rangel

Case Information

Initiation Date:    11/01/2019  Information

Prosecuting Agency:    US Department of Justice

Name of Prosecuting Attorneys:   

  • Ariana Fajardo Orshan, United States Attorney
  • Michael N. Berger, Assistant United States Attorney
  • Robert A. Zink, Chief, Fraud Section, Criminal Division
  • John-Alex Romano, Trial Attorney, Fraud Section, Criminal Division

Assisting Agencies:    Unknown

Type of Action:    DOJ Criminal Proceeding

Docket or Case Number:    19-cr-20726

Court:    S.D. Florida

Origin of the Proceeding:    Unknown

Whistleblower:    Unknown

Case Status:    Ongoing


Summary  Information

Petroleos de Venezuela S.A. ("PDVSA'') was the state-owned and state-controlled oil company in Venezuela. PDVSA was responsible for the exploration, production, refining, transportation, and trade in energy resources in Venezuela and provided funding for other operations of the Venezuelan government. Petrocedeno S.A. was a PDVSA subsidiary that consisted of a combination of PDVSA and two European oil companies, with majority control belonging to PDVSA. Petrocedeno had a significant operating budget and awarded several hundred million dollars in procurement contracts each year.

Lennys Rangel held various positions at the PDVSA subsidiaries, including as head of procurement for Petrocedeco.

According to the documents in this case, between March 2015 and 2017, senior PDVSA officials directed Rangel to assist and expedite the award of Petrocedeno contracts. Expediting the award of the contracts would ultimately yield benefits for those senior PDVSA officials as well as other Venezuelan officials. In order to complete that task, Rangel agreed to receive over $5 million in bribes from PDVSA contractors in exchange for her assistance in obtaining the Petrocedeno procurement contracts. Rangel concealed the bribes by directing that they be made to bank accounts held in the name of her relatives and friends, and she subsequently used proceeds of the bribes for her own personal benetfit, including the purchase of real estate in South Florida.

On November 1, 2019, the DOJ filed a sealed single count information in the Southern District of Florida against Rangel alleging conspiracy to commit money laundering. The case was unsealed on March 11, 2020, and Rangel entered into a plea agreement on August 11, 2020. She is scheduled to be sentenced on March 23, 2021.

This case is ongoing.

Key Statistics

Country(ies) involved:    Venezuela

Region(s) involved:    Latin America

Total $ Sanctions Imposed by U.S. Government (FCPA-Related Charges Only):    $0

Sanction to Bribe Ratio:    Not Applicable

Sanction to Revenue Ratio:    Not Applicable

Sanction to Profit Ratio:    Not Applicable

FCPA Matter Name:   Multiple Parties' Involvement with PDVSA in Venezuela between 2008 and 2017 Information

Number of Related Enforcement Actions (Including This Enforcement Action):    24

Country(ies) involved:    Venezuela

Region(s) involved:    Latin America

Total $ Bribery Payments:    Unknown

Total $ Revenue Generated from Bribery:    Unknown

Total $ Profit Earned or Expenses Avoided from Bribery:    Unknown

Total $ Sanctions Imposed by U.S. Government (FCPA-Related Charges Only):    $80,898,010

Sanction to Bribe Ratio:    Not Applicable

Sanction to Revenue Ratio:    Not Applicable

Sanction to Profit Ratio:    Not Applicable

Defendants, Claims & Jurisdiction

Name:    Lennys Rangel

Employers & Positions:    Petrocedeno S.A. - Head of Procurement

Country:    Venezuela

FCPA Claims:    None

Related Claims:    Conspiracy to Launder Money (18 U.S.C. §§ 1956, 1957) ; Criminal Forfeiture (28 U.S.C. § 2461; 18 U.S.C. § 981) ; Criminal Forfeiture (21 U.S.C. § 853)

Statutory Basis for FCPA Jurisdiction:    Not Applicable

Entities Related to This Enforcement Action

Name:    Petrocedeno S.A.

Entity Type:    Joint Venture

Place of Incorporation:    Venezuela

HQ Country(ies):    Venezuela

Industry:    Oil & Gas

Bribery

Period of Bribery:   2015 - 2017

Total Bribery Payments:    $5,000,000

Total Revenue Generated from Bribery:    Unknown

Total Profit Earned or Expenses Avoided from Bribery:    Unknown

Country(ies) involved:    Venezuela

Region(s) involved:    Latin America

Officials Potentially Influenced (Name; Title; Organization): 

  • Lennys Rangel; Head of Procurement; Petrocedeno S.A.

Affiliates, Subsidiaries and Joint Ventures Involved in the Misconduct:    None/Unknown

Third-Party Intermediary:    None/Unknown

Type of Bribe:   Money

Cash, Wire or Check:    Not Available

Purpose of Bribe:    Obtain/retain business

TRANSACTION OVERVIEW
Bribes accepted by Rangel

Period of Bribery:   2015 – 2017

Total Bribery Payments:    $5,000,000

Total Revenue Generated from Bribery:    Unknown

Total Profit Earned or Expenses Avoided from Bribery:    Unknown

Country(ies) involved:    Venezuela

Region(s) involved:    Latin America

Officials Potentially Influenced (Name; Title; Organization):  

  • Lennys Rangel; Head of Procurement; Petrocedeno S.A.;

Affiliates, Subsidiaries and Joint Ventures Involved in the Misconduct:    None/Unknown

Third Party Intermediary:    None/Unknown

Type of Bribe:   Money

Cash, Wire or Check:    Not Available

Purpose of Bribe:    Obtain/retain business

Controls Existing at Time of Misconduct

Not Applicable

Mitigating & Aggravating Factors

Mitigating Factors Referenced by the Government (Individual Defendants):

Defendant Cooperation
Lennys Rangel  

Aggravating Factors Referenced by the Government (Individual Defendants):

Defendant Insufficient Cooperation
Lennys Rangel  

Resolution

Total Global Monetary Sanctions (All Charges):    $0

Total Monetary Sanctions Imposed by U.S. Government (FCPA-Related Charges Only):    $0

Total Monetary Sanctions Owed to U.S. Government (FCPA-Related Charges Only):    $0

Case Status:    Ongoing

Disposition:    Plea Agreement (Sanctions Undetermined)

Date of Disposition:    08/11/2020

Lennys Rangel

—  Total Monetary Sanctions Imposed by U.S. Government for Defendant (FCPA-Related Charges Only):    N/A

—  Imprisonment/Incarceration:    N/A

—  Probation/Supervised Release:    N/A

—  House Arrest:    N/A

—  Community Service:    N/A

—  Admission of Guilt/Acceptance of Responsibility:    Yes

Documents

No Document Title Date Category
1 Information 11/01/2019 Case Initiation
2 Plea Agreement 08/11/2020 Resolution