U.S. Breaks Up Scheme to Hide Tanker IDs to Transport Venezuelan Oil
The U.S. Department of Justice reports it has broken up a complex scheme conspiring to hide the ID of tankers to transport Venezuelan oil for the benefit of the state oil company PdVSA (Petróleos de Venezuela) in violation of U.S. sanctions. A 37-year-old Turkish national, Taskin Torlak, was arrested in Miami, on November 2 as he attempted to depart the U.S. for Turkey.
According to DOJ, beginning at least in or around November 2020, Torlak and others devised and implemented a complex scheme to violate and evade U.S. sanctions related to petroleum products from Venezuela and Iran. The scheme included obfuscating the identities of tankers moving the oil by re-naming and re-flagging vessels, covering vessel names with paint or blankets, and turning off the electronics that track vessels’ locations for the safety of ships and their crews.
Torlak and his co-conspirators allegedly received tens of millions of dollars from PdVSA in payment for transporting Venezuelan oil and hid the ultimate beneficiaries of the related transactions from U.S. financial institutions, who then unwittingly processed payments in furtherance of the scheme. The complaint further alleges that Torlak and his co-conspirators explicitly discussed the need to hide their conduct from the U.S. Government and its agencies, including OFAC, as well as commercial maritime entities.
“This defendant allegedly conspired to illegally sell Venezuelan oil, using deceit and trickery to hide the fact that this oil originated from Venezuela,” said U.S. Attorney Matthew Graves for the District of Columbia. “Venezuela’s state-owned oil company, PdVSA, was sanctioned by the U.S. government to prevent the current regime from further depleting the nation’s resources while it unlawfully remains in power.”
The U.S. sanctioned the Venezuelan state oil company on January 28, 2019, as part of its ongoing efforts to stop Venezuela President Nicolas Maduro. Officials said it was part of an effort to ensure that the Maduro regime remained the focus of U.S. sanctions. Among the elements was a blocking of dealing with the company or investing or issuing new debt.
“As alleged, the defendant conspired to evade U.S. sanctions imposed on PdVSA, deploying deception to smuggle black-market oil from Venezuela,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division.
Torlak was arrested and charged with one count of conspiring to violate the International Emergency Economic Powers Act (IEEPA). Homeland Security Investigations Washington D.C. is investigating the case.