Denuncia de Leocenis García Contra Juan Guaidó y Nicolás Maduro

www.tramiccs.com.
ve
TRAMICCS 2015 C.A.
TRANSLATION OFFICE
____________________________________________________________________________
I, Alfonso Sáez, Venezuelan, of legal age, of this

domicile, holder of Venezuelan identity card Nº
12711460, public interpreter, in the English language in
and for The Bolivarian Republic of Venezuela, as appears
of a License dated on July 13, 2004, published in the
Official Gazette, of the Bolivarian Republic of
Venezuela, Nº 38040, dated on 10/08/2004, duly
registered with the Main Public Registry Office of the
Capital District, on July 14, 2004, under Nº 169, Folio
169, Volume 01, and with the 6th Court of First Instance
for Civil, Mercantile, and Traffic Matters of The
Judicial Circuit of The Metropolitan Area of Caracas, on
September 1, 2004, under Nº 05, Folio 12. Registered in
the embassies of the United Kingdom and Canada. Do
hereby certify: That a document on the Spanish Language
has been submitted to me, whose faithful translation
into the English Language reads as follows:
Caracas
//
Movimiento Prociudadanos a Venezuelan Non-Profit Organization
and Leocenis Garcia, individually,
Requesters,
Vs.
Nicolas Maduro
Juan Guaido Marquez
Individually.
Accused.
//
-1-
Avenida Urdaneta, Candilito a Urapal, Edif. Dilcan, piso 2, OficD. La Candelaria. Caracas, Venezuela.
577.23.84 /// 0414.155.59.60 : tramitescaracas3b@gmail.com
www.tramiccs.com.ve
TRAMICCS 2015 C.A.
TRANSLATION OFFICE
____________________________________________________________________________
PETITION
Research in which appears especially, NICOLAS MADURO AND JUAN
GUAIDO, in accordance with state and federal regulation of
the Racketeer Influenced and Corrupt Organizations Act, RICO
Act, the USA Patriot Act, as well as the Anti-Money
Laundering Act of the United States of America, claiming
"extraterritorial jurisdiction" to be investigated and
prosecuted under the US justice system.
Claim jurisdiction and, alternatively, prosecution. In
support of this, LEOCENIS GARCIA and the MOVIMIENTO
PROCIUDADANOS declare the following:
INTRODUCTION
This is an action for fraud, violations of the state and
federal statutes of the Racketeer Influenced and Corrupt
Organizations Act, also known as RICO, the Universal USA
Patriot Act, Securities Act, and its various amendments, as
well as the United States Anti-Money Laundering Act that has
"extraterritorial jurisdiction."
Presented by LEOCENIS GARCIA and the MOVIMIENTO
PROCIUDADANOS, a liberal center-right movement, defender of
free capitalism, the free market economy and non-intervention
of the state in individual rights, which operates in
Venezuela, against two Venezuelans in public functions -
NICOLAS MADURO and JUAN GUAIDO - who, as part of their
duties, used the American financial system at different times
to issue fraudulent public debt bonds, called PDVSA 2020
Bonds1 and, then pay their interests, supposedly in safeguard
-2-
www.tramiccs.com.ve
TRAMICCS 2015 C.A.
TRANSLATION OFFICE
____________________________________________________________________________
of the asset that served as collateral for them, a Venezuelan
company, called Citgo.
This operation used the US financial system to pay for an
illegal operation, thus sentenced by those who would then
order the payment.
Therefore, in presenting this legal action, LEOCENIS GARCIA
and the MOVIMIENTO PROCIUDADANOS - recognize that the US
justice system has jurisdiction over the matter, due to the
defendants' use of laws and financial institutions in the
United States for the design and application of a program of
financing to the company Petroleos de Venezuela, S.A.
(PDVSA), and the receipt of financial resources from
commissions for the execution of this financial operation.
RELEVANT FACTS
Mr. GUAIDO and Mr. MADURO are citizens and residents of
Venezuela. The first serves for the time of the events as
President of the National Assembly, and the second as head of
the socialist regime of Venezuela.
FROM THE START OF THE FRAUD:
1.-Constitution of the Bolivarian Republic of Venezuela,
article 150 and article 151, establishes that the holding of
____________________________________________________________________________________________
1
See Annex 1: Public Offer of PDVSA 2020 Bonds (Compendium)_Public communication dated
October 12th, 2016, which presents the extension of the Early Expiration Date and the
Expiration Date of the exchange offers (the “Offers of Exchange”) of up to US$ 5,325 million
of the total amount of the capital of the Senior Bonds of 5,250% with expiration in 2017 (
(the “April 2017 bonds”) and Senior Bonds of 8.50% with expiration in 2017 (the “November
2017 bonds”) and, in conjunction with the April 2017 bonds, the “Existing Bonds”) for new
Senior Guaranteed Bonds of 8.50% with expiration in the year 2020.
-3-
www.tramiccs.com.ve
TRAMICCS 2015 C.A.
TRANSLATION OFFICE
____________________________________________________________________________
“contracts” of public national interest requires the approval
of the National Assembly (see current constitution).
2.-The PDVSA 2020 Bonds, as a financing mechanism of the
Government of NICOLAS MADURO, assume for the Venezuelan
nation an obligation - illegally - contracted by the
Executive Power (Nicolas Maduro) in contempt of the current
Constitution of the Bolivarian Republic of Venezuela ( Art.
313), which required him to request authorization from the
National Assembly (Art. 187, Number 12), in 2016.
3.-From the origin, and applying Venezuelan law, the bonds
are illegal, for which they are responsible who participated
in their issuance, that is, the regime of Nicolas Maduro and
the different representatives of PDVSA.
4.-These bonds did not receive the legal approval required by
the National Assembly when they were issued in 2016, but
their interest was paid by the board designated by the
President of the National Assembly, engineer JUAN GUAIDO -
elected for that position in January 2019 -. The holders of
the PDVSA 2020 Bonds include Wall Street institutions such as
the British Emerging Markets Investment Fund, Ashmore, 6.52%
of the Blackrock Fund, 4.14% of the T. Rowe Fund and the
remaining 38.33% individual investors.
5.-PDVSA did not need the authorization of the National
Assembly (AN in Spanish acronym) to issue bonds. It never
needed it because it operates as an autonomous entity
supervised by the executive and with regular accountability
to the AN. However, it was needed it to issue bonds that put
-4-
www.tramiccs.com.ve
TRAMICCS 2015 C.A.
TRANSLATION OFFICE
____________________________________________________________________________
as guarantees actives; such is the case of the shares of
CITGO, whose owner is the State.
6.-The PDVSA 2020 bond for an amount of $ 3.4 billion placed
50.1% of the shares of Citgo-company that operates in
Houston, belonging to Petroleos de Venezuela, S.A. - as a
guarantee. The remaining 49.9% guarantees Rosneft financing.
The Guaido government paid $ 71 million in interest to
prevent bondholders from seizing Citgo.
WHAT WAS PROCEEDED.
The debtor (PDVSA - Venezuela) could default on alleging
force majeure, as it is quite obvious that it follows from
the situation in Venezuela, where to date there was the
deputy of two presidents in the supposed exercise of the
Republic.
Additionally, nonexistent bonds had not to be paid2. Unless,
as seems to be the case, an accounting maneuver was answered
to pay more than 70 million dollars of the United States of
America, with the use of privileged information by those
close to the claim to obtain a gain in the purchase of bonds
in the secondary market. Explanation as follows:
1. Perhaps, the most revealing fact is that, the director of
CITGO ANDRES ELOY PADILLA (designated by Guaido and the
AN in the direction of the PDVSA subsidiary in the US),
conveniently concealed that in 2007 he was a title broker
values in the Caracas Stock Exchange and, is brother of
________________________________________________________________________________________________________________________________________________
2
See Annex N 2: Exchange Offer of each and every one of the Senior Bonds of 5,250% with
expiration in 2017 and Senior Bonds of 8.50% with expiration in November in 2017, for new
Senior Bonds of 8.50% due in 2020.
-5-
www.tramiccs.com.ve
TRAMICCS 2015 C.A.
TRANSLATION OFFICE
____________________________________________________________________________
the deputy of the National Assembly LUIS CARLOS PADILLA
VILLALBA, who is the Vice President of the Energy and
Petroleum Commission where the nominations for those
positions were defined (including that of Mr. ANDRES ELOY
PADILLA).
2. It was that Board of Directors Ad Hoc of PDVSA (ANDRES
ELOY PADILLA, among others) that recommended to President
GUAIDO to pay the interest of the 2020 bond with money
from the escrow account because it is collateralized with
CITGO shares3. Days before payment LUISA PALACIOS,
president of the board of directors of Citgo appointed by
the Interim Government of JUAN GUAIDO, said about the
payment of PDVSA 2020 bonds at an event in Washington
that Citgo was controlled by the authority of GUAIDO
instead of MADURO4.
What was appropriate was to ask the US Department of the
Treasury for an Executive Order, similar to Executive Order
13303 of 2003, issued by the then PRESIDENT GEORGE W. BUSH,
to protect the Iraq Development Fund, from any demand or
attempt of confiscation of its assets. Executive orders are
decrees issued by the President of the United States, which
in this case could have blocked any attempt to confiscate
CITGO.
It was not done
The executive order could never arrive because the interim
government itself had requested more sanctions against the
3
See Annex N 3: Press Release of the Administrative Board of Petroleos de Venezuela, S.A.,
dated October 28th, 2019.
4
See annex N 4: Economic Bulletin: The Monstrous Venezuelan Debt, May 2019.
-6-
www.tramiccs.com.ve
TRAMICCS 2015 C.A.
TRANSLATION OFFICE
____________________________________________________________________________
MADURO regime and, they had arrived on February 1st, 2019,
introduced by the Office of the Department of Foreign Assets
Control (OFAC) of the Department of the Treasury, where the
purchase of Venezuelan bonds was prohibited.
Well, that order did not extend to the 2020 Bonds. Because
the order provided that, by accepting that dispensation,
Maduro could legally excuse himself from paying such bonds,
based on the Treasury Department's own order. Why the
President of the National Assembly, it is worth asking, was
so interested that MADURO could not excuse himself from
paying ILLEGAL bonds?
It seems absurd.
While the Treasury Department assumed that Maduro was the
beneficiary of a payment ban issued by it, the State
Department and the White House recognized Juan Guaido as
President and administrator of that same debt. It seems that
the US had been confused about the status of GUAIDO (and
MADURO) as the bondholders could be. However, this argument
was never used.
The National Assembly ended up paying a debt that it never
authorized in the first place. At last, it ended up paying
90% of the value of a debt that, by means of the Executive
Order, would not reach 35% of its current market value, given
the price of these bonds internationally and the different
financial risk ratings that qualify PDVSA as high risk for
investments.
-7-
www.tramiccs.com.ve
TRAMICCS 2015 C.A.
TRANSLATION OFFICE
____________________________________________________________________________
IN CONCLUSION:
1. The right thing was to ask the US government an
Executive Order to reduce drastically the price of these
2020 Bonds.
2. Second, offer to buy back the outstanding debt that we
would buy with that discount at the auction price. That
would eliminate the risk of CITGO being auctioned at the
request of the holders of the PDVSA 2020 Bonds.
3. Third, alternatively, renegotiate the collateral
(CITGO), given that more than half of the debt of these
bonds has already been paid.
OF THE JURISDICTION:
1.- The Anti-Money Laundering Act of the United States
establishes that it has “extraterritorial jurisdiction” if
the “prohibited conduct… is by a US citizen, or in case it is
not a US citizen, the conduct occurs partially in the United
States” and involves more of US$ 10,000.
2.- Law, known as the "Victory Act" makes revisions and
serves as a guide for the application of the Congressional
package as the laws referring to money and asset laundering,
white-collar crime, and corporate fraud, for example; clearly
establishes the mechanism for the confiscation of property,
(extinction of ownership), investigation procedures, such as
interception of communications, extra-jurisdictionality and
extraterritoriality, is the interlace, between the Patriotic
law and the Sarbanes-Oxley Act in the frontal fight against
drug trafficking and the financing of terrorism.
-8-
www.tramiccs.com.ve
TRAMICCS 2015 C.A.
TRANSLATION OFFICE
____________________________________________________________________________
3.- The Patriot Act whose regulations when dealing with the
issue of the Bank Reserve, allows interceptions and searches
even outside the state limits. The law with its “longa
manus”, establishes in Subtitle C that regulates the topic of
Crimes and Protection, in Section 377, the Jurisdiction of
Extraterritoriality that supposes the power of the North
American authorities to persecute any foreigner in any place
of the world that carry out any action constituting terrorism
or money laundering that is at the expense of the United
States. Thus, the Patriotic Act is considered as a normative
and economic example of globalization that arises as an
exception to the principle of territoriality of the law in
each State and, on the contrary, it tends towards
international collaboration in the fight against
transnational crimes such as terrorism and money laundering
by sacrificing individual freedoms to restrict them under an
outright defense of world security.
4.- The Racketeer Influenced and Corrupt Organizations Act,
also known as RICO. This federal regulation, the corrupt
organizations, was approved in 1970 by the United States
Congress and allows prosecution and civil penalties for
certain criminal acts performed in a company. The RICO Act
defines a "company" as any natural person, business entity,
association, union or group of individuals. It is codified
under Chapter 96 of Title 18 of the United States Code, which
deals with federal crimes and criminal proceedings. The
Racketeer Influenced and Corrupt Organizations Act aims to
dismantle illicit "organizations" such as the mafia and
criminal cartels that commit acts of bribery, forgery, theft,
embezzlement, fraud, trafficking in obscene material,
-9-
www.tramiccs.com.ve
TRAMICCS 2015 C.A.
TRANSLATION OFFICE
____________________________________________________________________________
obstruction of Justice, slavery, extortion, gambling, money
laundering, embezzlement of union funds, bankruptcy fraud or
securities fraud; Money laundering and related crimes;
The facts
A.-PRELIMINARY
With the purpose of having broad powers to capture financial
and economic resources, the Venezuelan State under the
socialist regime that imposed since 1999 repealed and
implemented, a series of decrees and regulations stipulated
in Venezuelan legislation that exempts the obligatory nature
of the companies of the Venezuelan State, autonomous
institutes, as well as, PDVSA is accountable to the
legislative authorities of the Nation, as it is reflected in
the Official Gazette of the Bolivarian Republic of Venezuela
Nº 5.891 Extraordinary, of July 31st, 2008, where the
Presidential Decree was published Nº 6.233, with Rank, Value
and Force of Organic Law of the Financial Administration of
the Public Sector. The Decree-Law is part of the last 26
Decree-Laws issued in the framework of the Enabling Law,
published in the Official Gazette of the Bolivarian Republic
of Venezuela Nº 38.617, dated February 1st, 20075.
This legislative reform was aimed at a single article,
article number 90, in the sense of allowing autonomous
institutes, public institutes whose main purpose is financial
activity and commercial companies owned by the State
(Petroleos de Venezuela, S.A.) access to carry out public
credit operations without the need for authorization by the
_________________________________________________________________________________________________________________
-10-
www.tramiccs.com.ve
TRAMICCS 2015 C.A.
TRANSLATION OFFICE
____________________________________________________________________________
5
See Annex N 5: Enabling Law on the Reform of the Organic Law of the Financial
Administration of the Public Sector.
Public Indebtedness Law better known as the “Umbrella Law”,
but only the permission of the President of the Republic in
the Council of Ministers. In any case, this law allowed these
public entities to obtain indebtedness for double their
patrimony or social capital, unless their respective special
law provides a greater amount.
B.- RELEVANT
Within the framework of these financial laws and regulations,
Petroleos de Venezuela, S.A. announced on October 12th, 2016
the extension of the Early Expiration Date and the Expiration
Date of the exchange offers (the “Exchange Offers”) of up to
US$ 5,325 million of the total capital amount of the Senior
Bonds of 5.250% due in 2017 (the “April 2017 bonds”) and
Senior Bonds of 8.50% with expiration in 2017 (the “November
2017 bonds”) and, in conjunction with the April 2017 bonds,
the “Existing Bonds”) for new Senior Guaranteed Bonds of
8.50% with expiration in the year 2020 (the “New Bonds”)6,
financial instruments that were negotiated in the North
American stock markets and commercialized by companies of
North American capital and British as: DF King & Co., Inc.,
Torino Capital, Blackrock Fund, T. Rowe Fund and the British
Emerging Markets Investment Fund, Ashmore, thereby violating
rules and regulations of the U.S. Securities and Exchange
Commission (SEC), which establishes that all investments
marketed in US soil must have the proper authorizations from
6
See Annex N 1: Public Offer of PDVSA 2020 Bonds (Compendium)_Public communication dated
Expiration Date of the exchange offers (the “Offers of Exchange”) of up to US$ 5,325 million
of the total amount of the capital of the Senior Bonds of 5,250% with expiration in 2017 (
(the “April 2017 bonds”) and Senior Bonds of 8.50% with expiration in 2017 (the “November
2017 bonds”) and, in conjunction with the April 2017 bonds, the “Existing Bonds”) for new
Senior Guaranteed Bonds of 8.50% with expiration in the year 2020.
-11-
www.tramiccs.com.ve
TRAMICCS 2015 C.A.
TRANSLATION OFFICE
____________________________________________________________________________
the highest authorities of the company that issues the
instrument to be negotiated, which does not comply with the
PDVSA 2020 Bonds.
This financial instrument maintains as main guarantee 50.1%
of the shares of the company CITGO, guarantee that exceeds
the value of the financing collected by the bonds issued at
the time, as well as, did not have the relevant approvals to
be considered as a collateral of the debt operation of PDVSA,
which has caused large economic and financial coalitions to
take control of this Venezuelan asset in North American
territory.
It is important to note that 51.01% of the PDVSA 2020 Bonds
issue is in the hands of the British Emerging Market
Investment Fund, Ashmore, 6.52% of the Blackrock Fund, 4.14%
of the T. Rowe Fund and the remaining 38.33% individual
investors. Ashmore helped the Administration of NICOLAS
MADURO in the refinancing of public debt and the issuance of
PDVSA 2020, which could indicate that these international
financial institutions had important and strategic privileged
information at the time of purchase and sale of these
financial instruments, which infringes the laws of the stock
markets, given that these actions generate unfair advantages
over other actors in the capital market.
C- IRREGULARITY
In 2016, the National Assembly of Venezuela, through an
Agreement, questioned the rationality of the indebtedness and
the constitution of the pledge, although it is true that
PDVSA did not require legislative authorization for the
-12-
www.tramiccs.com.ve
TRAMICCS 2015 C.A.
TRANSLATION OFFICE
____________________________________________________________________________
issuance of the aforementioned Bond, the prior authorization
was necessary to put in guarantee some good of the Nation, as
is the present case. Likewise, the Venezuelan parliament
warned that PDVSA operations were under risk because there
was excessive indebtedness for going from US$ 5 billion of
the United States of America to US$ 43 billion of the United
States of America in 2012, amount to which must be added the
US$ 20 billion of the United States of America to the
suppliers”, a warning that was given to the holders of these
financial instruments. The PDVSA 2020 Bonds arises in a
context of over-indebtedness during the largest oil boom in
Venezuelan history, between 1999 and 2017, about US$ 1,034
billion of the United States of America entered the country
(US$ 1.20 billion dollars of the United States of America of
2017), more than it had entered during the whole period
between 1970 and 19987.
Although there are doubts about the legality of the issuance
contract and the guarantee contract, the bond issue was made
and generated a false offer to the different international
investors who bought these financial instruments through
institutions in the North American financial system, using
the American and world financial market to make a
multimillion-dollar scam to the Venezuelan State, and cause
hundreds of investors to be involved in a legal proceeding
for the replacement of their assets and the interest accrued
by these instruments, given that said bonds were quoted in
these stock markets and marketed by companies of American
capital.
7
See Annex N 6: PDVSA announces the expiration and final results of its Senior Bond Exchange
offers of 5,250% with expiration in 2017 and Senior of 8.50% Bonds with expiration in
November 2017, for new Senior Bonds of 8.50% with expiration in 2020.
-13-
www.tramiccs.com.ve
TRAMICCS 2015 C.A.
TRANSLATION OFFICE
____________________________________________________________________________
In 2019, by means of a communication addressed to the
Presidency of the National Assembly dated April 15th, 2019,
the citizen President of the Ad Hoc Administrative Board of
Petroleos de Venezuela S.A., LUIS A. PACHECO, requested
authorization for “the payment of Interest on the 8.50%
Senior Secured Notes due 2020” bond, known as the “2020
Bond”. On that same date, the Special Prosecutor of the
Bolivarian Republic of Venezuela, Dr. JOSE IGNACIO HERNANDEZ
issued an opinion in which he recommended “that the payment
of interest, under the terms set forth in the following
section, be made under protest”, while determines the
legality of such contracts. In this regard, it is appropriate
to ask, Who are the true holders of these PDVSA 2020 Bonds?,
given that the president of the Ad Hoc Administrative Board
of Petroleos de Venezuela S.A., LUIS A. PACHECO, has publicly
declared that they are negotiating with the holders of the
Bonds in question, Why this Administrative Board does not
inform who the buyers of these worth securities were ninety
days before the date of payment of the interest authorized by
the National Assembly of Venezuela in the hands of JUAN
GUAIDO?, Who bought these PDVSA 2020 Bonds knowing that the
National Assembly had declared them void in 2016 just because
they were sure they were going to be paid?
This conclusion is not consistent with the provision approved
by the National Assembly on September 27th, 2016, in which it
objected to the conditions of issuance of the 2020 Bond and,
in particular, categorically rejected that within the
exchange operation it is offered as a guarantee with priority
of 50.1% of the shares that make up the capital stock of
Citgo Holding, Inc., or that a guarantee is constituted over
-14-
www.tramiccs.com.ve
TRAMICCS 2015 C.A.
TRANSLATION OFFICE
____________________________________________________________________________
any other good of the Nation without the approval of the
National Assembly”. As a result, the Sub Commission of Debt
and Public Credit attached to the Permanent Committee on
Finance and Economic Development of the National Assembly
issued a report dated April 24th of this year, in which it
proposes to the Plenary of the National Assembly authorize
the Chairman of the Ad Hoc Administrative Board of Petroleos
de Venezuela, S.A. to proceed to pay “under protest” the
interest due on April 27th, with a grace period until May
29th, as an exceptional measure called to protect CITGO and
the necessary assets to address the complex humanitarian
emergency, also taking into account the odious conditions
under which the 2020 Bond was issued, creating a
disproportionately favorable guarantee to the interests of
the holders; initiate research aimed at determining the
legality of the 2020 Bond issue.
This aspect is fundamental in order to determine if PDVSA had
effective payment capacity, as required by the current
legislation; and initiate the investigation on the legal and
financial conditions of the Venezuelan public debt, in order
to establish the legal framework for its renegotiation, in
accordance with the provisions of the Constitution and the
applicable Laws, which was approved in plenary of the
National Assembly of Venezuela as of May 8th, 2019.
In this sense, the holders of these bonds obtained the amount
corresponding to the agreed interests, US$ 71.6 million of
the United States of America, in the fear of the members of
the National Assembly that generate that the non-payment of
these instruments on CITGO. Those who at all times seek to
-15-
www.tramiccs.com.ve
TRAMICCS 2015 C.A.
TRANSLATION OFFICE
____________________________________________________________________________
extend the expiration period for the recalculation of
interest and thus be able to obtain half of the shares of
CITGO after this October 27th to execute the ownership of the
bonds.
It is important to note that many of the beneficiaries of the
bonds are linked to the Blackrock investment funds, T. Rowe
and the British Emerging Markets Investment Fund, Ashmore,
which is closely linked to the dictatorial regime of MADURO
and others opposition people8, who have as a north a policy
of cohabitation, for personal interests, and who at all times
seek to extend the expiration period for the recalculation of
interests and thus be able to obtain half of the shares of
CITGO after this 27th October to execute the ownership of the
bonds. The legal battle over CITGO begins to generate great
analysis scenarios. The auction of the shares, in addition to
catapulting the loss of this strategic subsidiary in the
United States, would require PDVSA to immediately pay the
PDVSA 2020 8.5% Bonds and the Rosfnet credit9.
Similarly, it should be noted that the action to pay the
interest of the PDVSA 2020 Bonds, generated an immense
economic commission to the people who approved the payment
operation, since this financial instrument had already been
declared illegal by the opposition National Assembly in 2016,
thus provoking great questions about the true purposes and
objectives when approving the cancellation of the interest of
8
See Annex N 7: https://konzapata.com/noticia/72514/kolumnistas/la-pelea-de-guaido-por-el-
bono-pdvsa-2020-sera-con-ashmore-un-fondo-aliado-de -maduro.html
9
See Annex N 8: http://www.bancaynegocios.com/citgo-intentara-refinanciar-1-850-millones-de-
deuda-con-canje-de-bonos-y-nuevo-prestamo/
-16-
www.tramiccs.com.ve
TRAMICCS 2015 C.A.
TRANSLATION OFFICE
____________________________________________________________________________
these financial instruments. It would be necessary to ask
then, who benefited from these commissions from the payment
of bonds that the opposition says are illegal and that the
Venezuelan government refuses to pay? This economic operation
used the US financial system to pay an illegal operation,
sentenced by those who would then order the payment,
violating the provisions established by the U.S. Securities
and Exchange Commission (SEC).
In this regard, the National Assembly alleged that the
contract for the issuance of the PDVSA 2020 Bond violated
Articles 150, 311 and 312 of the Constitution of the
Bolivarian Republic of Venezuela, as in its opinion it was a
contract of public national interest, signed with foreign
mercantile companies, which was not authorized by the
National Assembly.
The National Assembly also pointed out that this bond commits
50.1% of the shares of CITGO, a US-based company, which
represents the main asset of the nation outside Venezuela.
They also declared that in 2016 the National Assembly
declared the illegality of the operation, not only because it
was not approved by the Legislative Power, as ordered by
Venezuelan legislation, but also because it offers an
internal rate of return of 19.8 % and generates an over-
indebtedness of the assets of PDVSA and its subsidiaries.
This declaration of the National Assembly contradicts its
position and disposition to cancel the interests in May of
this year, generating in this way greater questions about
what are the interests that this institution really defends,
since declaring these bonds illegal would cause different
-17-
www.tramiccs.com.ve
TRAMICCS 2015 C.A.
TRANSLATION OFFICE
____________________________________________________________________________
legal and financial repercussions for PDVSA and the Republic,
because on October 27th a quota of these 2020 Bonds for an
amount of US$ 913 million of the United States of America
expires, which leaves without effect a possible restructuring
of the debt for this financial instrument.
THE OBTAINING:
The process of awarding and redeeming of the PDVSA 2020 Bonds
was carried out through a public offer published on September
16th, 2016 in the main national and international newspapers,
markets and international stock exchanges, through which,
Petroleos de Venezuela S.A. set out the legal and economic
conditions for the redemption process of the PDVSA 2017 Bonds
for the PDVSA 2020 Bonds. This public offer established10:

The total value of the issuance of the PDVSA 2020 Bonds
for US$ 7.1 Million. In addition, the face value of each
bond issued for the operation. It is important to note
that this financial instrument was negotiated by national
banking institutions in Bolivars but quoted in US
Dollars, which limits the possibility that ordinary
Venezuelans can access the acquisition of this financial
instrument, since there was a control of change since
2003 by the National Executive, for the acquisition of
foreign currency in Venezuela requires express
authorization from the Central Bank of Venezuela and the
10
Expiration Date of the exchange offers (the “Offers of Exchange”) of up to US$ 5,325
million of the total amount of the capital of the Senior Bonds of 5,250% with expiration
in 2017 ( (the “April 2017 bonds”) and Senior Bonds of 8.50% with expiration in 2017 (the
“November 2017 bonds”) and, in conjunction with the April 2017 bonds, the “Existing
Bonds”) for new Senior Guaranteed Bonds of 8.50% with expiration in the year 2020.
-18-
www.tramiccs.com.ve
TRAMICCS 2015 C.A.
TRANSLATION OFFICE
____________________________________________________________________________
Floating Market Exchange Rate (DICOM in Spanish acronym).
Given this fact, it can be assumed that only individuals,
businesspersons or institutions with large economic
and/or social ties with the Government of Nicolas Maduro
can obtain the necessary foreign currency to carry out
investment operations in US Dollars within the national
territory. Likewise, only people, businesspersons or
institutions with great economic and/or social ties with
the Venezuelan Government could be sure of the repayment
of the capital of these bonds as the risk rating of PDVSA
and the Republic of Venezuela at the time of issuance of
these securities value had fallen dramatically during
2016.
 The collateral associated with the security title is made
up of a first degree security guarantee on 50.1% of the
shares that make up the capital stock of CITGO Holding
Inc. and, guaranteed unconditionally and irrevocably by
PDVSA Petroleos S.A.; pledge that was not authorized by
the National Assembly, given that CITGO Holding Inc. is a
company composed of Venezuelan public social capital11.
 The regulatory legal framework for the repurchase
operation of the PDVSA 2020 Bonds, as well as cases of
legal and/or financial disputes in the execution of the
financial operation for these bonds, was established
based on the provisions of the Securities Act of the
United States of America and its different amendments
in force
11
Expiration Date of the exchange offers (the “Offers of Exchange”) of up to US$ 5,325
million of the total amount of the capital of the Senior Bonds of 5,250% with expiration
in 2017 (the “April 2017 bonds”) and Senior Bonds of 8.50% with expiration in 2017 (the
“November 2017 bonds”) and, in conjunction with the April 2017 bonds, the “Existing
Bonds”) for new Senior Guaranteed Bonds of 8.50% with expiration in the year 2020.
-19-
www.tramiccs.com.ve
TRAMICCS 2015 C.A.
TRANSLATION OFFICE
____________________________________________________________________________
for the date of issuance of these financial instruments,
which limits their purchase and resale under the rules
established in the aforementioned law. In this sense, the
North American legal framework was used for the
regulation of PDVSA financing operations, as well as,
American institutions for the commercialization of these
financial instruments.
 Entrepreneurs and/or economic brokers awarded with these
securities are an integral part of the North American
financial system since their regular operations are
carried out on American soil.
 The debt was issued with expiration in 2017 and then was
exchanged for the 2020 bond. The PDVSA 2017 bond was
issued 10 years earlier (in 2007) under the modality that
combined bolivar and the dollar, that is, it was a
security that was issued in dollars but the creditor paid
it in bolivars and in that process, the holders of titles
made a profit. When the first bond was made, the PDVSA
2017, the parallel exchange rate was at 5.70 bolivars per
dollar and the implicit cost of the operation was 2.70
dollars per barrel, that is, it was guaranteed to people
who bought those titles a profit of 100%. In other words,
the Republic lost 1.3 million dollars because it issued
debt that was equivalent to selling dollars at half of
what the dollars cost in the parallel market. This
specifies the fraudulent origin of the debt because it
was an operation issued in dollars but payable in
bolivars in which there was very important participation
of Venezuelan investors because those bonds were bought
with bolivars.
-20-
www.tramiccs.com.ve
TRAMICCS 2015 C.A.
TRANSLATION OFFICE
____________________________________________________________________________
 That initial placement was handled in VENEZUELA by the
Econoinvest Exchange. The main director of Econoinvest
was Herman Sifontes Tovar, who is married to Diana Lopez
Mendoza, who is the sister of the leader Leopoldo Lopez,
party to which Juan Guaido belongs (irrelevant data for
the present case, but necessary to clarify context)
 The 2020 bonds, really have their origin in that debt,
and in 2016, the state oil company collapsed the cash
flow and was unable to make payments that had $ 7.1
million of bonds that were due in 2017. It had no way to
pay them and to avoid a default (nonattendance) they made
a debt operation through a voluntary exchange of bonds,
which were due by others in 2020 and that are guaranteed
by Citgo.
Through the aforementioned legal and economic conditions, the
process of commercialization of the PDVSA 2020 Bonds was
established, generating a disadvantageous scenario for
Venezuela in the following years, since the Venezuelan
government did not honor the different payments for the
amortization of capital and interest of these titles, as well
as the application of economic sanctions without the
ecumenical study of their relevance and purpose, have
resulted in a perfect scenario for the realization of a scam
to the Republic of Venezuela through the American financial
and legal system.
PETITION:
MOVIMIENTO PROCIUDADANOS, a Venezuelan Non-Profit
Organization, and LEOCENIS GARCIA, individually, requests
that federal agencies be instructed to investigate these
-21-
www.tramiccs.com.ve
TRAMICCS 2015 C.A.
TRANSLATION OFFICE
____________________________________________________________________________
facts, accepting the jurisdiction, without committing
omission to federal crimes, committed under the American
financial system for Venezuelan citizens NICOLAS MADURO and
JUAN GUAIDO.
LEOCENIS GARCIA
MOVIMIENTO PROCIUDADANOS
I attest that the above is a true and correct

translation of the document in Spanish presented to me.
In Witness Whereof, I set my hand and affix my seal, in
Caracas. On this 05th day of November 2019.
Alfonso Sáez R.
Public Interpreter
Official Gazette Nº 38040
Translation Nº 11051903.010125esin
-22-

Denuncia de Leocenis García Contra Juan Guaidó y Nicolás Maduro

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Denuncia de Leocenis García Contra Juan Guaidó y Nicolás Maduro

Uploaded by

Copyright:

Available Formats

www.tramiccs.com.

I, Alfonso Sáez, Venezuelan, of legal age, of this

Movimiento Prociudadanos a Venezuelan Non-Profit Organization

and Leocenis Garcia, individually,

Juan Guaido Marquez

Research in which appears especially, NICOLAS MADURO AND JUAN

GUAIDO, in accordance with state and federal regulation of

the Racketeer Influenced and Corrupt Organizations Act, RICO

Act, the USA Patriot Act, as well as the Anti-Money

Laundering Act of the United States of America, claiming

"extraterritorial jurisdiction" to be investigated and

prosecuted under the US justice system.

Claim jurisdiction and, alternatively, prosecution. In

support of this, LEOCENIS GARCIA and the MOVIMIENTO

PROCIUDADANOS declare the following:

This is an action for fraud, violations of the state and

federal statutes of the Racketeer Influenced and Corrupt

Organizations Act, also known as RICO, the Universal USA

Patriot Act, Securities Act, and its various amendments, as

well as the United States Anti-Money Laundering Act that has

Presented by LEOCENIS GARCIA and the MOVIMIENTO

PROCIUDADANOS, a liberal center-right movement, defender of

free capitalism, the free market economy and non-intervention

of the state in individual rights, which operates in

Venezuela, against two Venezuelans in public functions -

NICOLAS MADURO and JUAN GUAIDO - who, as part of their

duties, used the American financial system at different times

to issue fraudulent public debt bonds, called PDVSA 2020

Bonds1 and, then pay their interests, supposedly in safeguard

of the asset that served as collateral for them, a Venezuelan

company, called Citgo.

This operation used the US financial system to pay for an

illegal operation, thus sentenced by those who would then

order the payment.

Therefore, in presenting this legal action, LEOCENIS GARCIA

and the MOVIMIENTO PROCIUDADANOS - recognize that the US

justice system has jurisdiction over the matter, due to the

defendants' use of laws and financial institutions in the

United States for the design and application of a program of

financing to the company Petroleos de Venezuela, S.A.

(PDVSA), and the receipt of financial resources from

commissions for the execution of this financial operation.

Mr. GUAIDO and Mr. MADURO are citizens and residents of

Venezuela. The first serves for the time of the events as

President of the National Assembly, and the second as head of

the socialist regime of Venezuela.

FROM THE START OF THE FRAUD:

1.-Constitution of the Bolivarian Republic of Venezuela,

article 150 and article 151, establishes that the holding of

“contracts” of public national interest requires the approval

of the National Assembly (see current constitution).

2.-The PDVSA 2020 Bonds, as a financing mechanism of the

Government of NICOLAS MADURO, assume for the Venezuelan

nation an obligation - illegally - contracted by the

Executive Power (Nicolas Maduro) in contempt of the current

Constitution of the Bolivarian Republic of Venezuela ( Art.

313), which required him to request authorization from the

National Assembly (Art. 187, Number 12), in 2016.

3.-From the origin, and applying Venezuelan law, the bonds

are illegal, for which they are responsible who participated

in their issuance, that is, the regime of Nicolas Maduro and

the different representatives of PDVSA.