Deltec Bank & Trust has been the recipient of a lot of bad publicity in the last few weeks, between their alleged association with a recent money-laundering scheme involving Venezuela. In a statement issued to Tribune Business, Deltec maintained their lack of involvement, following a report that the US federal authorities intended to seize the assets within bank accounts for both Deltec and Ansbacher, a bank in the Bahamas.

Deltec replied to the allegations by letting the authorities know that they are in compliance with all laws regarding anti-financial crime. The subject of the lawsuit, Abraham Edgardo Ortega, previously worked as an executive director of financial planning with the PDVSA. In his plea agreement, he said that he would forfeit “all assets on deposit in account/portfolio number 1303311-00 at Deltec Bank & Trust in Nassau, The Bahamas.” He also said that he would do give up “all assets on deposit in account number 200020600 at Ansbacher Ltd in The Bahamas, held in the name of Greatwalls FS.”

Quickly, Deltec responded with a denial that anyone involved with this $1.2 billion case is involved with their bank at all. In a statement, they said, “Deltec wishes to make it abundantly clear that neither Mr. Ortega nor any of the other indicted individuals is or was a client of the bank.”

They added,

“Further, Deltec wishes to emphasize that at no time was Deltec or any of its officers knowingly involved in any irregularity or implicated in any wrongdoing. Deltec conducts all client relationships in a manner that is fully compliant with all applicable banking laws and regulations, and consistent with its internal policies with respect to sound risk management. Deltec works with its regulators on a continual basis and has strong internal AML (anti-money laundering) and KYC (Know Your Customer) procedures, applied without compromise, to preserve the financial and reputational integrity of the bank and jurisdiction.”

Based on the documents on record with the federal court in south Florida, Gustavo Adolfo Hernandez Frieri also played a key role with Ortega. Sources indicate that both Frieri and Ortega, along with a confidential informant, originally met in April in 2016, discussing how to conceal and wash $5 million in bribes, making it appear as though those funds have been “legitimately acquired.” At the time, Frieri suggested that they establish a “fake mutual fund.”

The plea agreement added, “On February 24, 2017, the CS instructed Deltec Bank & Trust in Nassau, The Bahamas, where a portion of Ortega’s illicit funds were then held, to subscribe to the fund.” The agreement also alleged, “On or about February 28, 2017, at the direction of Ortega and Hernandez Fieri, approximately $5m was transferred from an account/portfolio number at Deltec Bank & Trust” to a New Jersey-based financial institution, holding an account for the fund called Global Securities Trade Finance.

From there, the account was moved to another banking with the “fake subscription in Global Securities Trade Finance deposited [back] at Deltec Bank, thus making the $5m available to Hernandez Frieri for distribution to Ortega.”

Considering how much Deltec’s reliability has been questioned in recent weeks, a tweet on Bitfinex’ed may say it best – “Credibility is shot when you take on clients like Bitfinex and Tether.”

https://twitter.com/Bitfinexed/status/1060889821021986816

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