George Semerene Quintero, a 60-year-old Venezuelan national, has recently become a key figure in the ongoing U.S. efforts to enforce sanctions against Venezuela’s state-owned oil company, Petróleos de Venezuela S.A. (PDVSA). Semerene’s guilty plea to conspiring to violate the International Emergency Economic Powers Act (IEEPA) highlights the complex schemes used to evade U.S. sanctions. His actions, aimed at supporting the Nicolás Maduro regime, involved the illegal export of critical aircraft parts from the United States to Venezuela, in direct violation of U.S. law.
The Role of George Semerene Quintero in the Scheme
At the heart of this sanctions evasion scheme was George Semerene Quintero, an employee in PDVSA’s procurement department. Between January 2019 and December 2021, Semerene and his co-conspirators orchestrated a plan to illegally procure and export millions of dollars’ worth of aircraft parts from the United States. These parts were crucial for maintaining PDVSA’s aircraft fleet, which plays a vital role in the operations of the Maduro regime.
Semerene’s role was pivotal. By using deceptive practices, he ensured that U.S. suppliers were unaware that the parts they were selling were ultimately destined for Venezuela and PDVSA. He and his co-conspirators used a variety of tactics to obscure the true end-users of the parts, making it appear as though they were being sent to other countries.
The Sanctions Evasion Scheme Unveiled
To evade U.S. sanctions, George Semerene Quintero and his associates created a sophisticated network that involved third-party companies in Costa Rica and Spain. These companies, including Novax Group SA in Costa Rica and Aerofalcon SL in Spain, were used as fronts to purchase the parts. The conspirators fabricated invoices, falsified customs declarations, and provided false end-user certificates to make it appear as though the parts were for legitimate purposes in these countries.
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In reality, these parts were destined for Venezuela, where they would be used by PDVSA, a company that has been a primary target of U.S. sanctions aimed at weakening the Maduro regime’s financial capabilities. The sanctions are part of a broader strategy by the U.S. to isolate and put pressure on Nicolás Maduro, whom the U.S. government considers an authoritarian leader.
Legal and National Security Implications
The guilty plea by George Semerene Quintero is a significant victory for U.S. law enforcement agencies, particularly in the realm of sanctions enforcement. It serves as a powerful reminder of the U.S. government’s dedication to maintaining the effectiveness of its sanctions and export controls. The International Emergency Economic Powers Act (IEEPA), under which Semerene was charged, is a key tool in this effort. It gives the U.S. president the authority to regulate commerce in response to threats to national security, including those posed by foreign governments and entities.
Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division emphasized the broader implications of this case. He noted that Semerene’s actions not only violated U.S. law but also posed a direct threat to the global efforts aimed at isolating the Maduro regime. Olsen’s statement emphasizes the importance of enforcing these laws to protect U.S. national security interests.
The Consequences for George Semerene Quintero
With his guilty plea, George Semerene Quintero now faces the possibility of significant prison time. He is scheduled to be sentenced on November 5 and could face up to 20 years in prison. This potential sentence reflects the seriousness of his crimes and serves as a warning to others who might consider engaging in similar schemes to evade U.S. sanctions.
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Assistant Secretary for Export Enforcement Matthew S. Axelrod of the Bureau of Industry and Security (BIS) highlighted the deceptive tactics used by Semerene to help PDVSA evade sanctions. Axelrod noted that while Semerene was able to deceive U.S. suppliers and authorities for a time, he ultimately could not evade the legal consequences of his actions.
The case of George Semerene Quintero is a clear example of the lengths to which individuals and entities will go to support regimes targeted by U.S. sanctions. His involvement in the illegal export of aircraft parts to PDVSA highlights the challenges that U.S. law enforcement faces in enforcing sanctions and export controls. However, it also highlights the U.S. government’s determination to hold accountable those who seek to undermine these efforts.
As the U.S. continues to apply pressure on the Maduro regime, the guilty plea of George Semerene Quintero serves as both a victory for sanctions enforcement and a deterrent to others who might consider similar actions. The consequences of his involvement in this scheme will likely resonate beyond his own sentencing, reinforcing the importance of compliance with U.S. sanctions and export laws.
