Miami judge blasts Venezuela's top airline for 'fraud'

Two Venezuelan businessmen once convicted in U.S. as unregistered nts of late Hugo Chavez have scored a major victory in a Miami courtroom in a bitter fight for control of South American country’s largest private airline.While Avior Airlines has largely been grounded by U.S. sanctions and coronavirus pandemic, investors hope to recover at least some of its assets, including a regional airline in neighboring Colombia.

A Miami circuit judge this week rejected a suit by Jorge Añez that alleged his Florida-based partners h overcharged Avior for parts and services. Judge Michael Hanzman found that Añez h authority to represent Avior, saying re was overwhelming evidence he cooked company's books and formed an “illegitimate board of friendlies” to seize struggling airline.Ruling on previously unreported lawsuit, he found that Añez h lied in testimony and tried to use U.S. legal system to perpetrate “fraud.”

“Mr. Añez’s claim of 100 ownership of Avior is a complete fabrication, which reeks of afterthought and was concocted only after a dispute over operations of Avior,” judge wrote.

Neir Añez, his lawyer r Avior’s President Juan Bracamonte responded to repeated email and phone requests for comment. partner Añez tried to force out is an investment group that includes Carlos Kauffmann and Moises Maionica. Both men were sentenced in 2008 to more than a year in U.S. federal prison for ir role in a political scandal involving a suitcase full of $800,000 in cash sent to Argentina aboard a Venezuelan government plane.

two Venezuelan businessmen testified that y h been sent by n-President Chavez’s spy ncy to Miami to offer hush money to an FBI informant to keep quiet about cash shipment, which was allegedly destined to finance campaign of former President Cristina Fernandez de Kirchner.Upon completing ir sentences, both men remained in U.S. and resumed ir careers.

In 2010, y paid $5 million for a 50% share in Avior and its affiliates and helped transform it from a near-bankrupt carrier with a single aircraft to one serving routes throughout Venezuela as well as Miami and Latin America.As foreign carriers abandoned Venezuela over payment disputes with socialist government of Nicolas Muro’ — Chavez's successor — Avior for a while mand to fill void, boosted by heavily subsidized jet fuel, a highly favorable exchange rate for its ticket sales in dollars and unmet demand from wealthier Venezuelans who still could afford to travel.

But as U.S. has imposed stiff sanctions on Venezuela, airline has once again come upon hard times.In 2019, it lost its profitable route to Miami as U.S. imposed a flight ban on Venezuelan airlines in its bid to force Muro from power. It’s also been blacklisted by European regulators due to safety concerns. Meanwhile, coronavirus has grounded its fleet of 26 aircraft for months.

company’s highest-valued asset, an Airbus 340-300, was recently turned over to Muro’s government to pay off old debts and fees, according to Kauffmann. This summer same plane, its tail number changed and w operated by state airline Conviasa, flew from Caracas to Tehran, flight tracking records show.According to judge’s order, relations between Añez and his partners began to sour in late 2018. A few weeks later two sides decided to part ways, with Añez agreeing to purchase half of airline he didn’t alrey own for $37.5 million.

But deal was never executed and inste Añez maneuvered to appoint an “illegitimate board” comprised of his son and longtime lawyer, according to judge’s order. He also filed Miami lawsuit against his partners, accusing m of using a Florida-registered company y also owned to overcharge airline by several millions of dollars for parts, supplies and maintenance.

In his order, Judge Hanzman didn’t determine merits of Avior’s underlying claims, just wher Añez, as purported 100% shareholder of airline, h authority to initiate legal proceedings.He found that Añez in testimony tried to disavow existence of a company ledger that listed Miami investors as shareholders and replace it — after filing his lawsuit — with a bogus ledger where his partners were excluded.

“Testimony by Mr. Añez is emblematic of a disregard for truth and a willingness to commit perjury and t eng evidence in a credible way,” judge wrote.Kauffmann said that even as he and Maionica have tried to move beyond his past, Añez thought that with his lawsuit he could pressure m into selling ir shares and taking full control of company for practically free.

"He thought that because of our background we would be afraid to defend ourselves in American courts and that it would be a handicap,” Kauffmann told AP. two sides are also fighting in a parallel arbitration at International Chamber of Commerce.

Kauffmann concedes that re’s little worth fighting for and that reclaiming company in Venezuela is a lost cause so long as Muro remains in power. Still, emboldened by Miami ruling, he hopes to use judgment to salv what he can of Avior’s investment in neighboring Colombia, where it operates a regional airline, Gran Colombia de Aviacion, out of city of Cali.

(Im Credit: Instagram/@aviourairlines) 

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