Illarramendi’s Funds Receiver Beats Record, Sues Now For “About” US$ 171 Million in Fraudulent Transfers

February 7, 2012
View this document on Scribd

Well, when I said last night to stay tuned because something more was coming from the Receiver of Illaramendi’s funds,  I really did not think it would be so soon, but via the same source as yesterday, as well as Setty’s publishing of the suits against Venezuelan Moris Beracha and an even smaller one for “only” US$ 7.6 million, the receiver for Illarramendi’s funds, topped his own record in less than 24 hours, claiming Beracha and affiliated companies received US$ 171 million in illegal payments and transfers.

That is 4.8 times the amount of the suit against Juan Montes I wrote about last night.

Pretty soon, the Receiver will not be able to top himself, the funds had, after all, only US$ 540 million, hard to fraudulently take more than that.

But you never known with these clever Venezuelans. Stay tuned, just in case.

But there is no mincing of words in the accusation:

“For nearly five years, Moris Beracha (“Beracha”) and his affiliated entities, described below, (the “Defendants”) participated in numerous, suspect transactions with Francisco Illarramendi (“Illarramendi”) and the Receivership Entities. Beracha and these affiliates received exorbitant fees, excessive and outlandish rates of interest, kickbacks and other improper payments. Beracha and his entities received this money as Beracha knowingly served as Illarramendi’s source of liquidity to perpetuate Illarramendi’s Ponzi scheme and pay debts and redemptions as they came due. Beracha’s funding came in various forms, including the loaning of money for short periods of time at annual interest rates often exceeding 80%, and the introduction to Illarramendi of investors and important Venezuelan government officials, bankers and financiers who could engage in transactions with Illarramendi. Beracha provided the money or access to money that kept Illarramendi and his scheme afloat.”

and I particularly liked this one:

“Finally, upon information and belief, Beracha assisted Illarramendi with the payment of millions of dollars in bribes to at least one Venezuelan government official. The totality of Beracha’s involvement clearly shows that he was someone who knew about the massive fraud in which Illarramendi was engaged.”

as well as the conclusion:

“The Receiver’s investigation is ongoing. To date, in total, the Receiver has identified approximately $171,675,738 in fraudulent transfers to the Defendants, comprising investor proceeds and other monies that must be recovered for distribution to Illarramendi’s victims and creditors”

Jeez, US$ 171,675,738

These Venezuelans really know how to think big, no?

The rest of the document, I will not bore you with it, the small number of comments shows you are not as interested as I am, show each of the steps taken by Beracha and his companies, 4A Star Corp, Frctal Management, Fractal Factoring Fund, Fractal Holding, Hermitage Coinsultants, La Signoria, etc. etc. to, according to the Receiver, fraudulently transfer assets from Illarramendi’s funds.

Last nights’ brief was more fun, more picturesque, this one is more dense, more legalese. But the result is the same, the Receiver accuses a Venezuelan and in this case, some of his companies, of fraud.

And in Venezuela, little is being said, PDVSA is fine, The National Assembly thinks this has nothing to do with them and the silence in the press, so far, is quite total.

It’s called self-censorship…

Note added: From Setty, more suits:

Against Illarramendi, for “Only” US$ 300 million.

Against Francisco Lopez and relatives: US$ 29 million

Against Odo and Nacy Habeck: US$ 7.6 million


19 Responses to “Illarramendi’s Funds Receiver Beats Record, Sues Now For “About” US$ 171 Million in Fraudulent Transfers”

  1. […] oil workers disappeared (with the help of David Osio’s banks). In that case in particular, Moris Beracha, another former client of FTI Consulting, paid bribes to a PDVSA official using Osio’s […]

  2. KK Minyhann Says:

    Check out his other “partners” from the 1980’s and 1990’s , they are even worse

  3. Pedro Pablo Medina Says:

    What do you think about this statements of Illramendi?
    I don’t care about anyone in particular, the thing that call my attention was that Illaramendi said that he did all alone…

    • moctavio Says:

      I have no idea if it is true or not. So far the receiver has excluded a Beracha company, but last I read about the case, Beracha was still being accused

  4. In The Know Says:

    It was only a matter of time before Beracha’s actions caught up to him. I’m frankly surprised that his illicit gains from the structured note scam with Banco Del Tesoro and the illegal kickbacks to Danilo Diaz Granados (front man for Hugo Chavez) haven’t been prosecuted yet. But I guess why would Chavez want to prosecute the scheme that lined his own pockets.

  5. moctavio Says:

    Well, it seems to say they got fund money for doing nothing, just for being buddies. I really don’t have much thoughts on it, didn’t even know the relationship, or that marin was sole owner of Descifrado.

    • rene Says:

      i don’t think anyone receives 2 million for doing nothing. it indicates that descifrado is not a very reliable source.

      • moctavio Says:

        Oh, you are thinking that angle…Had looked at it more like buddy to buddy, rather than influence peddling. Good Point.

  6. rene Says:

    miguel, what do you think of the 2 million lawsuit against Marin and the other owners of descifrado?

  7. Alex Dalmady Says:

    I wonder if a lot of these money transfers aren’t just one end of USD/VEB transactions of the black market variety.

  8. CharlesC Says:

    Breaking News! Last minute! This letter can change everything! I take back every bad thing I ever said about Pablo Perez.
    Mr. Perez delivers the perfect message. This IS a knockout of Chavez.
    It is perfect! This is what I have been looking for from the opposition!
    FInally Perez hits the biggest one -out of the park!!! Take a look!!!

  9. clayton Says:

    I seldom comment because I have nothing to add, but that does not mean lack of interest.

  10. Romano Says:

    The section “Economia” in todays El Universal newspaper mentions all the details known till yesterday

  11. island canuck Says:

    The shame of Venezuela is that almost no one in general society will be shocked by this or pay much attention to it.

    It would be interesting to know who the government official is?

    What are our AN members doing about this?

  12. Gold Says:

    Bored? I don’t think so. Speechless.
    Oh boy, do I wanna know every little detail. Thank you, Miguel.

  13. Armando J Tirado Says:

    Please post a pdf of this lawsuit – I am interested
    I am a venezuela attorney, a US lawyer and a UK solicitor so perhaps I can contribute to shed some lights on any doubts you may have regarding this development

    • LAB Z Says:

      It is quite simple Armando . . . . you can View this document on Scribd

      Go to this link

      Once in the browser, you can download it to your PC in PDF format and study it at your own leisure.

      It reveals a cunning web of astounding deceit and corruption. The ways of con men who select to operate in a blurry area where real victims have little or no recourse, the tools for prosecution are meek, and the schemes of protection and defense are lopsided.

      Do try to take your best swing . . . we root for U !

  14. jau Says:

    Hey Miguel, you are not boring anyone here. Keep on informing!!!

    I hope that none of my friends ‘suddenly appear’ in this or similar investigations in the future, but I am not sure if I will be so lucky. I left the country because you could feel that most people were ready to jump in the party and grab whatever they could take “hell with everything I am grabbing some millions for myself!”.

    As they say, it is not that we deserve the government we have, its that the government is a reflection of society. This is just another sad example.

  15. sapitosetty Says:

    Hey, wake up, there’s another $300 million!

    Yeah, I hear you. This stuff is boring. It sort of is. I wish I were more easily bored. I could just go to the beach like a normal person.

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