Key Ally Of Venezuela's Maduro Freed In Exchange For 10 Imprisoned Americans And "Fat Leonard"

This deal represents the U.S. government's boldest attempt to improve relations with Venezuela and extract concessions from President Maduro.

The release of Alex Saab, a Maduro associate who was arrested on a U.S. warrant for money laundering in 2020, is a significant concession to the Venezuelan leader. U.S. officials stated that the decision to grant Saab clemency was difficult but necessary in order to bring home the jailed Americans, which has been a core objective of the Biden administration.

The deal also guarantees the release of 10 Americans who had been held in Venezuela, including six who have been designated by the U.S. government as wrongfully detained. President Joe Biden expressed his gratitude that their ordeal is finally over and that their families are being reunited.

Venezuela's government described Saab as a "victim" of "illegal detention" and characterized his release as a "symbol of victory" achieved through the country's "peaceful diplomacy." The government urged the U.S. to remove all sanctions against Venezuela.

December 21, 2023

The agreement also includes the extradition of Leonard Glenn Francis, the Malaysian owner of a ship-servicing company in Southeast Asia who is at the center of one of the largest bribery scandals in Pentagon history. Francis, also known as "Fat Leonard," was arrested nearly a decade ago as part of a federal sting operation. He and his company, Glenn Defense Marine Asia, allegedly bilked the Navy out of more than $35 million by bribing top-ranking Navy officers with lavish gifts.

The exchange of prisoners and the extradition of Francis is seen as a major concession to Maduro, which may anger hard-liners in the Venezuelan opposition who have criticized the White House for not taking stronger action against the Venezuelan leader.

The release of the Americans and the extradition of Francis come after the Biden administration agreed to suspend some sanctions on Venezuela, following a commitment by Maduro and an opposition faction to work towards free and fair conditions for the 2024 presidential election. However, Maduro has failed to reverse a ban blocking his chief opponent, Mara Corina Machado, from running for office, which was a condition set by the U.S. for maintaining the eased sanctions.

The U.S. has conducted several prisoner swaps with Venezuela in recent years. The most notable was a deal in October 2022 for seven Americans, including five oil executives at Houston-based Citgo, in exchange for the release of two nephews of Maduro's wife who were jailed in the U.S. on narcotics charges.

Alex Saab, 51, was arrested on a U.S. warrant for money laundering while on a fuel stop in Cape Verde in 2020. The U.S. charges against him were conspiracy to commit money laundering tied to a bribery scheme that allegedly siphoned off $350 million through state contracts to build affordable housing for Venezuela's government. Saab was previously sanctioned by the U.S. Treasury Department for allegedly running a scheme that stole hundreds of millions of dollars from food-import contracts.

Millions of Venezuelans continue to live in poverty, with the minimum wage being about $3.60 a month. The low wages and high food prices have led to over 7.4 million people leaving the country.

The prisoner exchange and extradition of "Fat Leonard" are the latest concessions made by the Biden administration in an effort to bring home Americans jailed overseas. Some have raised concerns that these swaps may incentivize hostage-taking abroad and create a false equivalence between wrongfully detained Americans and foreigners who have been properly prosecuted and convicted in U.S. courts.

However, Biden administration officials argue that securing the freedom of wrongfully detained Americans and hostages abroad requires difficult negotiations.