Venezuela is facing an increasing number of lawsuits and payment rulings, with the latest being a decision from the U.S. District Court for the Southern District of New York favoring plaintiff João Dionisio De Sousa, who was affected by the liquidation of Banco Canarias.
Judge Jennifer L. Rochon issued a ruling of default against the defendants named by De Sousa, specifically, the Deposit Protection Fund (FOGADE), an agency of the Bolivarian Republic of Venezuela.
João Dionisio De Sousa filed the lawsuit on April 22, 2025, seeking USD 22,724,000 along with interest and legal costs, as well as any other remedies deemed just and appropriate.
He also included in his claim a fund of USD 6,000,000 held in specific account numbers at Morgan Stanley Smith Barney LLC.
The plaintiff was demanding payment of over USD 22 million, plus interest and costs, intending to recover this amount in U.S. Treasury bonds that served as collateral for loans with Banco Canarias, which was intervened and liquidated by FOGADE.
Despite paying off his loans completely, De Sousa did not receive any funds.
The Default Judgment
On January 20, 2026, Judge Jennifer L. Rochon of the U.S. District Court for the Southern District of New York issued a default judgment against the Deposit Protection Fund (FOGADE), in favor of plaintiff João Dionisio De Sousa.
The judge ordered and adjudicated, after considering the plaintiff’s motion for the initiation of a Default Judgment against the defendants, along with all documents presented in support of it, granting some of the demands for just cause shown.
The ruling states that the Plaintiff must notify the defendants with a copy of this Default Judgment no later than February 3, 2026, and the day after notification, he must file proof of that notification in the court record.
Judge Rochon instructed the courtroom secretary to close the motion. The USD 6,000,000 deposited in the accounts at Morgan Stanley Smith Barney LLC and FOGADE were rescinded.
Additionally, requests for Default Judgment against the defendant FOGADE and the defendant In Rem USD 6,000,000 were also rescinded.
This decision underscores the fact that Venezuela continues to accumulate more lawsuits and payment rulings, with no clear plan on how it will address these obligations.
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