The Wall Street Journal-20080126-Politics - Economics- Guilty Plea in U-S- Felt in Venezuela- Argentina
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Politics & Economics: Guilty Plea in U.S. Felt in Venezuela, Argentina
A Venezuelan man pleaded guilty Friday to U.S. charges that he tried to silence a key witness in a case that involves alleged illegal financing by Venezuela of Argentine President Cristina Fernandez de Kirchner's election campaign.
The plea by Moises Maionica, 36 years old, is a major victory for U.S. prosecutors in a case that has captured headlines across South America. The case has aggravated U.S. relations with Venezuela and Argentina, and highlighted how Venezuela's government of President Hugo Chavez may be using its oil wealth to influence the region.
The scandal began in August, when a Venezuelan-American businessman, Guido Antonini, was caught by Argentine customs with $800,000 stuffed into a suitcase. U.S. officials say the money was from the Chavez government for the campaign of Mrs. Fernandez de Kirchner. She went on to win the election, succeeding her husband, Nestor Kirchner.
Mr. Antonini, who denies any wrongdoing, returned to his home in Miami and began cooperating with U.S. officials. Shortly after, Mr. Maoinica and four other men were sent by the Chavez government to try to silence Mr. Antonini about the source of the money, U.S. prosecutors say. U.S. officials arrested four of the men, charging them with acting as unregistered agents of a foreign government on U.S. soil.
The governments of Venezuela and Argentina have dismissed the U.S. charges as a political ploy aimed at discrediting their "progressive" governments.
Mr. Maionica's plea could be bad news for the Chavez government. In pleading guilty, Mr. Maionica is in a position to bargain with any inside information he may have about the operation in exchange for leniency in sentencing, which has been set for early April. Mr. Maionica would have faced as many as 10 years in prison and a fine of $250,000 if he had been convicted at trial.
Mr. Maionica is a close associate of Jorge Rodriguez, who was replaced as Venezuela's vice president earlier this month. U.S. authorities believe Mr. Maionica may be able to shed light on some of cash transfers that have allegedly gone to help Mr. Chavez's political allies in the region, as well as alleged corruption by leading officials in Mr. Chavez's government. "He will cooperate and implicate them," says one Miami lawyer following the case.
Mr. Maionica's decision to cooperate will also raise the pressure on his co-defendants, especially two wealthy Venezuelan businessmen who also have close ties to the Chavez government. The men, Franklin Duran and Carlos Kauffmann, were remanded to federal custody and denied bail, despite arguments that their extensive property holdings and business activities in Florida eliminated any flight risk. Mr. Duran's lawyer couldn't be reached for comment.
Legal analysts say the U.S. government had the strongest case against Mr. Maionica because the lawyer was tape recorded a number of times saying he was acting on behalf of the head of Venezuela's secret service, known as the Disip. According to court papers released Friday, Mr. Maionica admitted arranging calls between Mr. Antonini and a senior official in the Disip.
