[NYTr] Miami: 2 Plead Not Guilty in Venez-Argentine "Suitcase Cash" Scandal

[All the News That Doesn't Fit]

Bloomberg - Jan 7, 2008
http://www.bloomberg.com/apps/news?pid=20601086&sid=aCkp21GfOoTA&refer=news


Miami: Venezuelans Plead Innocent in `Suitcase Scandal' Case

By Carlyn Kolker and David Voreacos

Jan. 7 (Bloomberg) -- Two men accused of acting as illegal agents of
Venezuela pleaded innocent in a case that U.S. prosecutors claimed
involves covering up the attempted delivery of $800,000 in a suitcase
to an Argentine presidential campaign.

Carlos Kauffmann and Moises Maionica, both 36, entered not guilty pleas
today in Miami federal court. Florida businessman Guido Alejandro
Antonini Wilson said he carried the cash from Venezuela to Buenos
Aires, where airport authorities discovered it Aug. 4. Prosecutors
contend Venezuela intended it for Argentine President Cristina
Fernandez de Kirchner's campaign.

Antonini cooperated with U.S. authorities, who made secret recordings
before Kauffmann, Maionica and three other men were indicted Dec. 20.
Prosecutors alleged that the coverup plot included a bribe offer of $2
million to Antonini, a threat to his children and false documents. The
charges inflamed already antagonistic U.S. relations with Venezuela and
hurt American bids to improve ties with Argentina after Fernandez won
Oct. 28.

``Carlos Kauffmann has entered a plea of not guilty, asserting his
innocence to the charge of being an agent of any foreign government,''
said his attorney, Jack Denaro, after a court hearing. ``He will seek
exoneration and the redemption of his good name.''

Kauffmann and Maionica, both Venezuelans, appeared before U.S.
Magistrate Judge Barry Garber. They have been held without bail since
their Dec. 11 arrest with two other men. Maionica attorney Ruben Oliva
agreed to postpone a bail hearing that had been scheduled for Jan. 11.

`Suitcase Scandal'

The indictment, by a grand jury in Miami federal court, charged the men
with trying to coerce Antonini to remain silent about the source and
destination of the cash. Dubbed the ``suitcase scandal'' by the
Argentine media, the incident has led political leaders in Venezuela
and Argentina to accuse the U.S. of meddling.

The indictment charged Kauffmann; Maionica; Franklin Duran, 40; Rodolfo
Wanseele Paciello, 40; and Antonio Jose Canchica Gomez, 37, with
conspiracy and acting as agents of Venezuela without notifying the U.S.
attorney general. They face as much as 10 years in prison if convicted
of the most serious charges. Duran and Wanseele pleaded not guilty.
Canchica is a fugitive.

Duran said in court papers that he and Kauffmann are partners in
Industrias Venoco CA, the largest privately owned petroleum company in
Venezuela. They also own an oil drilling company, Perfoalca, which buys
equipment from U.S. manufacturers, according to court papers.

Klim Fund

Kauffmann is also the managing director in Klim Fund BV. Kauffmann,
Duran and the fund made deposits of $41 million at American Express
Bank International, according to a lawsuit they filed Dec. 7 in Florida
state court in Miami.

They claimed breach of contract and fraud over the bank's alleged
liquidation of a $25 million note in connection with a loan, according
to the complaint, which was voluntarily dismissed Dec. 17, court
records show. Michael Hacker, the attorney representing Kauffmann and
Duran at the time, declined to comment.

On Aug. 6, the U.S. Justice Department filed a criminal charge against
the bank for failing to maintain an effective money-laundering program.
Prosecutors agreed to dismiss the case after a year if the bank made
payments of $65 million and completed a series of reforms.

The Miami-based bank engaged in ``serious and systemic'' violations of
anti-money laundering laws from December 1999 to April 2004, according
to a so-called deferred prosecution agreement. The bank caters to
wealthy Latin American investors.

The case is U.S. v. Moises Maionica, 07-cr-20999, U.S. District Court,
Southern District of Florida (Miami).