US DOJ Indicts Ten Individuals for Evading Sanctions on Venezuela’s PDVSA

The United States Department of Justice (DOJ) has indicted ten individuals, arresting one, for their involvement in a scheme designed to circumvent U.S. sanctions against Venezuela’s state-owned oil company, PDVSA. The charges allege a conspiracy to violate the International Economic Emergency Powers Act by illegally obtaining aircraft parts, including Honeywell Aerospace Turbofan engines, from the United States to service PDVSA’s aircraft fleet.

Details from the DOJ’s April 22 statement reveal that the defendants engaged in these activities after the U.S. imposed sanctions on PDVSA in January 2019. They reportedly utilized third-party entities—Novax Group SA based in Costa Rica, and Aerofalcon SL in Spain—to facilitate the smuggling of these parts into Venezuela.

The indictment highlights several transactions facilitated by these intermediaries. PDVSA acquired 26 aircraft tires in two separate batches, one Dassault Falcon Honeywell Turbofan Engine for USD 837,000, and various other aircraft parts for undisclosed amounts. Moreover, there was an exchange involving two damaged engines for two new Honeywell Turbofan engines valued at EUR 3.39 million (approximately USD 3.64 million).

The DOJ’s charges encompass four employees from PDVSA and four from Novax, along with two individuals from Aerofalcon. Both companies had previously been hit with export restrictions last year, as reported by ch-aviation. Following the indictment, the spare parts were said to have been routed through these companies to avoid detection on their way to Venezuela.

As of now, ch-aviation has reached out to Novax Group for a statement, while attempts to contact Aerofalcon have been unsuccessful.

PDVSA’s current fleet includes eight aircraft: one Falcon 2000EX/EASY/LX, four Falcon 50s, and three Falcon 900s, with seven of the eight powered by Honeywell Aerospace’s TFE731 engines, according to the ch-aviation fleets module. This case underscores the ongoing complexities and challenges in enforcing international sanctions and export controls, particularly within the aerospace sector.