Colombian businessman and former Venezuelan minister Alex Saab pleaded guilty in Miami to conspiracy to commit money laundering and unlawful financial transactions. Under a plea deal, Saab admitted to creating shell companies, diverting funds from Venezuelan government contracts and falsifying records and has agreed to cooperate with U.S. investigators. His cooperation could yield key evidence implicating Nicolás Maduro and members of his inner circle in the alleged diversion of funds tied to Venezuela’s CLAP food program.
Alex Saab Pleads Guilty in Miami, Agrees to Cooperate — Potential Major Blow to Nicolás Maduro
Alex Saab pleaded guilty Tuesday to conspiracy to commit money laundering and unlawful financial transactions in a Miami federal court. File Photo by Rayner Pena R./EPA
Sept. 15 (UPI) — Colombian businessman and former Venezuelan minister Alex Saab, described by U.S. authorities as a principal financial intermediary for President Nicolás Maduro, pleaded guilty Tuesday in a federal court in Miami to conspiracy to commit money laundering and unlawful financial transactions.
Saab, 54, had entered a not-guilty plea in the same court on July 22 but, under a plea agreement with U.S. prosecutors, acknowledged his role in money laundering, creating shell companies, diverting funds from Venezuelan government contracts and falsifying records. He changed his plea before U.S. District Judge Kathleen Williams, after previously preparing for a jury trial scheduled for November.
Allegations and Scope
The U.S. Department of Justice alleges Saab ran a multimillion-dollar fraud and bribery scheme between 2015 and 2019, using the U.S. banking system to launder money siphoned from public funds intended for Venezuela’s subsidized food program (known by its Spanish acronym CLAP), which serves low-income Venezuelans.
Plea Deal and Cooperation
Under the terms of his plea agreement, Saab has agreed to cooperate fully with ongoing federal investigations. U.S. and Spanish-language media report his cooperation could have significant implications for Maduro and other figures in his inner circle. The agreement reportedly requires Saab to provide information about unidentified co-defendants tied to Maduro’s political network and to offer details pertaining to Maduro’s wife, Cilia Flores.
Background
Saab was first arrested in Cape Verde in 2020 at the request of U.S. authorities while traveling to Iran. He was later released in December 2023 and returned to Venezuela as part of a prisoner exchange. After his return, Maduro appointed him minister of industries and national production. Reports indicate Saab was transferred to U.S. custody again in mid-May.
Why This Matters
Prosecutors say Saab possesses extensive knowledge of the finances and alternative channels used by Maduro’s circle to move large sums outside the Western financial system after sanctions were imposed on Venezuela. Saab’s firsthand testimony could be pivotal in determining whether Maduro was directly connected to the movement of illicit funds allegedly tied to organized criminal activity.
The development comes as Maduro himself faces separate federal charges in New York related to narcoterrorism, drug trafficking and weapons offenses. Saab’s cooperation could provide U.S. prosecutors with new leads or testimony relevant to those cases.
Note: Reporting on details of diplomatic transfers, prisoner exchanges and Venezuelan internal decisions has been inconsistent across outlets; this article presents the core, corroborated elements of Saab’s plea, agreement to cooperate and the potential implications.
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