Banker to Venezuela kleptocrats turns star witness

A Swiss banker convicted in the U.S. for facilitating the looting of Venezuela's state coffers is breaking his silence and revealing what he knows about corruption in the South American country. Matthias Krull was for years the go-to banker for government insiders as the head of Julius Baer Group's office in Caracas. Over 14 years he estimates having brought in more than $1 billion in deposits to the Zurich-based bank. Among his would-be clients were President Nicolas Maduro's stepsons. But in 2018 his charmed life came to an abrupt end when he was arrested on money laundering charges at Miami's international airport while vacationing with his family. The discreet banker then began his second act as all-star witness to a federal criminal investigation known as Operation Money Flight. Court documents unsealed this month show that Krull's assistance mapping out how Venezuelan kleptocrats stole billions in oil wealth was rewarded when a judge slashed by 65% a 10-year sentence. That's one of the biggest reductions ever recorded in Miami federal court. Krull spoke to the AP over several months about his former clients and the responsibility of his managers in turning a blind eye to proliferating corruption in Venezuela. He said he regrets not having the courage to blow the whistle on corruptions when he was asked by a longtime client in 2016 to help launder proceeds from a $1.2 billion embezzlement scheme at state-run oil company PDVSA. But he said he never acted alone and is being made the fall guy for a private banking system built on secrecy and a drive for profits that was taken advantage of by corrupt actors. He cited the example of a Julius Baer office in Europe that opened an account for a Venezuelan client even after he warned his colleagues the businessman was under intense media scrutiny for corrupt ties to Maduro. On another occasion his managers decided to keep open the personal accounts of several individuals who they learned were under investigation by U.S. prosecutors.

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Banker to Venezuela kleptocrats turns star witness

A Swiss banker convicted in the U.S. for facilitating the looting of Venezuela's state coffers is breaking his silence and revealing what he knows about corruption in the South American country.

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