Venezuelan businessman Alejandro Betancourt, who has spent years under scrutiny in a US investigation into an alleged billion-dollar money laundering network involving Venezuela’s state-owned oil company PDVSA, has emerged as a key figure in the Trump administration’s plans for Venezuela’s oil industry.
Federal prosecutors in Miami recently ended their investigation into Betancourt following pressure from senior Trump administration officials, including then-Deputy Attorney General Todd Blanche, according to people briefed on the matter.
The development reportedly came as White House officials and Secretary of State Marco Rubio sought Betancourt’s assistance in negotiating a major oil agreement with Venezuela’s government.
The Justice Department, however, has denied that Blanche personally intervened in the case.
“This is a complete fabrication. Todd Blanche has never spoken about this case, or whether there even is a case, with anyone in SDFL,” a Justice Department spokesperson said. “He has also never told them to close any case, ever.”
Betancourt’s involvement in the emerging oil arrangement followed the US military’s capture of Venezuelan leader Nicolás Maduro in January and his transfer to New York to face narco-trafficking charges.
According to people familiar with the negotiations, administration officials contacted Betancourt within hours of Maduro’s arrest to seek his assistance in opening discussions with Venezuelan officials who remained in power, including Vice President Delcy Rodríguez.
The talks eventually contributed to plans for a major restructuring of Venezuela’s oil sector. President Donald Trump has since announced the venture, with Betancourt’s company expected to partner with the Pentagon in an arrangement that Trump says will give the US control over 65 billion barrels of Venezuela’s oil reserves.
Betancourt’s history with Venezuelan authorities has nevertheless drawn scrutiny.
He built a substantial oil business through contracts with the Venezuelan government under former President Hugo Chávez and later Maduro. His dealings placed him among wealthy Venezuelan businessmen sometimes referred to as Boliburgueses or Bolichicos.
US prosecutors have alleged that a network of wealthy Venezuelans helped divert money from Venezuela’s oil industry and move illicit proceeds through Miami property transactions as well as bank accounts in Malta and Switzerland.
Betancourt has never been charged with a crime in the US. However, he was identified as an unnamed co-conspirator in some transactions that formed part of the case against one of his cousins, who had been a business partner of his.
Ten people were indicted during the years-long investigation.
Betancourt’s lawyer, Jon Sale, has maintained that his client did not violate US law and that the absence of charges against him reflected that fact.
“He didn’t commit any criminal activity,” Sale told CNN. “He was involved in some transactions because he did business with his cousins. There’s no evidence he knew the money came from bribery, or had anything to do with PDVSA.”
The businessman was arrested in London last year under a Swiss warrant. As recently as January, he was included in a Swiss government order freezing the assets of 37 individuals, including Maduro and people linked to him.
Swiss authorities said the measure was intended to ensure that “any illicitly acquired assets cannot be transferred out of Switzerland” following Maduro’s arrest.
The US administration has defended its decision to work with Betancourt despite the allegations surrounding his past dealings.
“We vetted him through our system,” a senior US official said during a White House call with reporters on Tuesday. “There are no charges he’s facing in the United States for violation of any of our laws. And in fact, many of the European investigations on him were triggered by some allegations that were made by the United States.”
Rubio also defended Betancourt during an interview with Venezuelan broadcaster Sergio Novelli, saying the businessman had been thoroughly examined by US authorities.
“We thoroughly investigate what we know within our system,” Rubio said. “Obviously, if these individuals were under investigation in the United States, and we have checked that with all the authorities, there was no investigation within our system against him.”
People briefed on the matter said Rubio and other administration officials had pushed the Justice Department, first under then-Attorney General Pam Bondi and later under Blanche, to remove legal obstacles preventing Betancourt from participating in the oil negotiations.
Blanche’s alleged involvement occurred while he was deputy attorney general, including during Bondi’s tenure.
The effort reportedly extended beyond the closure of the US investigation. Blanche was also said to have contacted Swiss authorities seeking cooperation and the removal of warrants that restricted Betancourt’s international travel.
The State Department also issued Betancourt visas allowing him to enter the US several times as discussions over the oil deal progressed, according to a person briefed on the matter.
The State Department declined to comment, referring instead to recent statements by Rubio and other administration officials.
The White House described the oil agreement as a major economic opportunity for both countries.
“President Trump secured the largest oil deal in world history — one that will greatly benefit both the United States and Venezuela for years to come,” a White House official said. “This historic deal marks a major step toward stabilizing Venezuela’s economy after years of hyperinflation and almost no new investment, while more than doubling the United States’ oil reserves.”
The official added, “Less than one year ago, Venezuela was held hostage by a dangerous narco-terrorist who exploited Venezuela’s vast resources to enrich his friends and America’s adversaries. Today, Venezuela is on a path back to prosperity, working with the United States and American companies that are making unprecedented investments in its oil industry.”
The current proposal bears similarities to an oil arrangement that was discussed during Trump’s first term.
In 2019, Rudy Giuliani, who was then Betancourt’s lawyer and later became Trump’s attorney, reportedly worked to promote an oil deal involving Venezuela while also seeking assistance with Betancourt’s legal troubles.
Lev Parnas, a former Giuliani associate who said he worked on the proposed arrangement, claimed the plan involved negotiating with Maduro and some of Betancourt’s business associates.
The proposal was reportedly aimed at persuading Maduro to leave office peacefully and allow a political transition.
However, the plan failed to progress, partly because the Trump administration was supporting opposition leader Juan Guaidó in efforts to challenge Maduro’s government.
Betancourt was also described by Trump administration officials and Sale as a significant financial supporter of Guaidó’s opposition movement.
Sale has denied that Betancourt participated in any proposed arrangements Giuliani was discussing with Maduro at the time.
Betancourt’s name also surfaced in a 2018 Homeland Security Investigations case known as Operation Money Flight.
An HSI affidavit filed in federal court in Miami described the investigation as having uncovered “an international conspiracy to launder the PDVSA funds through Miami and several large-scale, international third-party money-laundering organizations.”
The affidavit further stated that the investigation involved “the use of Miami real estate and sophisticated false-investment schemes to launder hundreds of millions of U.S. Dollars.”
Betancourt was not named in the indictment documents, although people familiar with the investigation told CNN that he was identified as a co-conspirator in at least one transaction connected to the charges.
Rubio acknowledged that Betancourt’s history could create concerns about the optics of the new arrangement but pointed to his past opposition to Maduro.
During his interview with Novelli, Rubio said Betancourt had found himself “in a very, very bad place with Maduro” after his support for opposition figures became known in 2019.
“But now we have an opportunity to do something that I believe is going to benefit everyone,” Rubio added. “But specifically, in the long term, benefit the Venezuelan people.”
