Álvaro Pulido Vargas, partner of Álex Saab, is accused in the U.S. District Court for the Southern District of Florida, along with a group of supporters of the chavista regime —José Gregorio Vielma Mora, Emmanuel Enrique Rubio González, Carlos Rolando Lizcano Manrique, and Ana Guillermo Luis— for charges of corruption and money laundering.
The indictment against them —which could indirectly link Pulido’s partner, Álex Saab, who is not explicitly named— states that the defendants conspired to bribe Venezuelan officials to secure inflated government contracts for the importation of food and medicines. This involves the chavista social food program known as CLAP —Local Supply and Production Committees— from which hundreds of millions of dollars were allegedly diverted using an international network of bank accounts and shell companies.
The document outlines that the group laundered illicit profits through bank transfers that went through U.S. territory, in violation of the Foreign Corrupt Practices Act (FCPA). The prosecution seeks to confiscate assets worth over USD 1.6 billion.
Álvaro Pulido Vargas —currently imprisoned in Venezuela for his role in the PDVSA-Cripto corruption scheme— is the new name of Germán Enrique Rubio Salas —his birth name— to avoid being remembered for his involvement in drug trafficking (1). Pulido and Saab’s business dealings have always been under scrutiny by U.S. authorities, although they continue to deny their partnership. However, investigative reports indicate that the relationship between the two began in Dubai through their dealings with Venezuelan Jean Paul Rivas Guanipa in India’s pharmaceutical sector (2).
The formal indictment against Álvaro Pulido Vargas, partner of Álex Saab
On October 7, 2021, the U.S. District Attorney’s Office filed an indictment against Álvaro Pulido Vargas, alongside four other defendants: José Gregorio Vielma Mora, Emmanuel Enrique Rubio González, Carlos Rolando Lizcano Manrique, and Ana Guillermo Luis.
The indictment outlines a sophisticated corruption and money laundering network that operated between 2015 and 2020, focused on acquiring Venezuelan state contracts for the importation and distribution of food and medicines through the Local Supply and Production Committee (CLAP).
It highlights a bribery scheme involving payments to high-ranking Venezuelan officials to secure contracts at inflated prices. They utilized the international banking system —which included accounts in the U.S., Panama, Antigua and Barbuda, and the United Arab Emirates— to conceal the origin and destination of the illicit funds.
A specific contract of USD 340 million was noted for 10 million boxes of food at a price of USD 34 per box, significantly higher than the actual production cost.
The accused
The indictment lists the individuals and organizations that facilitated or benefited from the corruption scheme:
Álvaro Pulido Vargas (alias “German Enrique Rubio Salas”, alias “Cuchi”): Colombian citizen controlling companies like Group Grand Limited and Asasi Food, used to obtain government contracts.
José Gregorio Vielma-Mora: Venezuelan citizen and former governor of Táchira State (2012-2017). He oversaw contracting processes for COBISERTA and received bribes in exchange for awards.
Emmanuel Enrique Rubio González: Colombian citizen and son of Álvaro Pulido Vargas.
Carlos Rolando Lizcano Manrique: Colombian national responsible for logistics and distribution of food boxes in Táchira.
Ana Guillermo Luis: Venezuelan and Spanish citizen. Facilitated the creation of shell companies and bank accounts, also generating fraudulent contracts to justify fund transfers.
CLAP: State food and medicine distribution program.
COBISERTA: State-owned company in Táchira responsible for food procurement.
CORPOVEX: State entity managing imports and exports for Venezuela.
FONDEN, BANDES, and Ministry of Finance: State financial bodies issuing multi-million payments to companies controlled by the conspirators.
The conspiracy
The indictment indicates that the main purpose of the conspiracy was to unlawfully enrich the defendants by manipulating government contracts.
The conspirators met with José Gregorio Vielma Mora to discuss proposals for CLAP food boxes. Despite knowing that the production cost was much lower, Vielma Mora agreed to an inflated price of USD 34 per box.
In exchange for the contracts, bribery to Vielma Mora and other officials was agreed upon. Between December 2016 and April 2018, the ex-governor and a co-conspirator received approximately USD 17,256,935 in corrupt payments.
A contract was signed with COBISERTA in October 2016 for USD 340 million for 10 million food boxes.
In February 2017, a second contract with COBISERTA was signed for USD 369,900,000, also for 10 million food boxes.
Between March and May, two contracts were signed with CORPOVEX for medicines totaling approximately USD 145,880,176.
The indictment establishes that the defendants organized the purchase of food in Mexico and medicines in various countries, as well as packaging in boxes and exporting them to Venezuela, where Lizcano Manrique coordinated reception and distribution in Táchira state.
The money laundering scheme and financial flows
It indicates in the indictment that to hide the nature of the funds, the defendants used a complex international financial structure, specifically creating a network of dozens of personal and corporate bank accounts across multiple jurisdictions.
The indictment details that payments were made from Venezuela issued by FONDEN and BANDES to accounts held by Group Grand Limited and Asasi Food in Antigua and the United Arab Emirates.
Meanwhile, through the U.S., correspondent banks were used to transfer at least USD 170 million to co-conspirators, food suppliers, and logistics companies.
Additionally, direct transfers exceeding USD 5.5 million were made to Florida accounts controlled by the conspirators.
The complaint adds that due to the scarcity of U.S. dollars in Venezuela, Álvaro Pulido Vargas and his partners participated in the business of refining and selling gold on behalf of the Venezuelan government to obtain foreign currency —dollars or euros— to pay the foreign companies involved in the scheme.
The charges
The formal indictment presents the following charges against all defendants:
ChargeLegal DescriptionMaximum PenaltyCharge 1Conspiracy to commit money laundering (18 U.S.C. § 1956(h))20 yearsCharges 2-5Money laundering of monetary instruments (18 U.S.C. § 1956(a)(2)(A))20 years
If found guilty, the defendants will have to forfeit any property derived from these crimes to the U.S. government. The amount sought by the prosecution totals USD 1,607,626,307.19, representing the total of funds involved in the money laundering violations cited in the indictment.
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