Part A: Jorge Castro's Illegal Campaign
Contributions, and Why They Were Never Prosecuted
The following is the text of Chapter IV, Part D
without footnote references.
INTRODUCTION
In the course of the Committee’s investigation, we learned of
another source of foreign money – South America. The Committee
learned that the New York District Attorney’s Office conducted an
investigation into the banking activities of the Castro family of
Venezuela, and had uncovered evidence of illegal campaign activities
by that family. The District Attorney’s Office turned this
investigation over to the Justice Department, which failed to pursue
any charges against the key individuals involved. The Committee
followed up on the New York District Attorney’s investigation, and
brought to light the facts of the Castro case.
I. THE KEY PLAYERS
A. Orlando Castro Llanes
Born in Cuba, Castro Llanes was head of a wing of that nation’s
communist party until fleeing the island in 1959 following an
alleged dispute with Fidel Castro. After landing in Haiti, Castro
Llanes went to Miami, and in 1961 or 1962, depending on the account,
arrived in Caracas, Venezuela with just $150 in his pocket.
By the 1980s, Castro Llanes had become an influential
businessman in Venezuela, earning a fortune in the insurance
business. He began aggressively expanding his financial empire,
becoming active in banking, real estate, finance companies, radio
stations and newspapers. Ultimately, his Grupo
Impresas Latinamericanos included among its holdings, the Banco
Progreso in Venezuela, the Banco Progreso de Internacional de Puerto
Rico, and the Banco Latinamericano in the Dominican Republic.
In March of 1991, following allegations of money laundering, U.S.
Customs inspectors ordered the Banco Progreso accounts at New
York’s Bank America International frozen, along with those of a
number of other banks. Castro Llanes turned to his long-time legal
advisor and business associate, Charles Intriago, for assistance.
Mr. Intriago had known Castro Llanes for over a decade, and had
acted as his principal legal advisor on matters related to the
United States. In fact, they were so close that Castro Llanes
provided $80,000 in start-up capital for Intriago’s Money
Laundering Alert newsletter. In addition, Castro Llanes was
reportedly seeking to have Intriago appointed U.S. ambassador to
Venezuela. Intriago also organized a defense team for the Banco
Progreso matter which ultimately convinced U.S. Customs to release
the accounts.
In 1994, following the collapse of the Venezuelan banking system,
Castro fled to the United States and settled in Miami. Venezuelan
banking regulators seized Banco Progreso that December. Castro was
later charged in absentia with bank fraud, embezzlement, and
conspiracy by the Venezuelan government.
On April 4, 1996, Castro Llanes was indicted in New York along
with his son and grandson on charges of a scheme to defraud in the
first degree. He was convicted on grand larceny charges on February
19, 1997, and in April of that year sentenced to a term of one to
three years in prison. The larceny involved defrauding depositors of
the Banco Progreso International de Puerto Rico of as much as $55
million. His crime also cost the government of Venezuela more than
$8 million.
B. Orlando Castro Castro
The U.S.-educated son of Castro Llanes, and uncle of Jorge Castro
Barredo, Orlando Castro Castro was president of the Banco Progreso
in Caracas, Venezuela. He was convicted along with his father and
nephew by the Manhattan District Attorney on charges of bank fraud
involving the theft of millions of dollars from a Puerto Rican bank
the family controlled. He was sentenced to a term of two and
one-third to seven years in prison.
C. Jorge Castro Barredo
The grandson of Castro Llanes, Castro Barredo worked in his
grandfather’s banking empire as president of the Banco
Latinamericano in the Dominican Republic. In 1992, Castro Barredo
made $25,000 in illegal foreign conduit contributions to the
Democratic Party. According to his sworn testimony, these
contributions were made at the direction of family lawyer and DNC
Trustee Charles Intriago. Bank documents show that the contributions
were reimbursed shortly thereafter by a Venezuelan firm owned by his
grandfather. Castro Barredo was also charged in the Banco Progreso
fraud case.
The bank fraud case was precipitated when an insurance company
controlled by the Castro family overdrew its account at their
Dominican Bank, and local banking authorities required the
institution to increase its deposits by $3 million. Castro Barredo
improperly withdrew $3.26 million from the family’s Puerto Rican
bank and deposited it in the Dominican Republic institution, using a
portion of the money to purchase a yacht. Castro
Barredo provided testimony to representatives of the Justice
Department concerning his knowledge of illegal foreign conduit
campaign contributions and his testimony was corroborated
independently by documentary evidence obtained by the New York
District Attorney’s office.
Notwithstanding documentary and testimonial evidence, the Justice
Department chose not to bring any charges related to the Castro
conduit contributions. On February 19, 1997,
Castro Barredo was convicted on the unrelated bank fraud and larceny
charges. On December 15, 1997, he was sentenced to a term of three
and one half to ten and one half years in prison.
D. Maria Sire Castro
Maria Castro is the aunt of Castro Barredo, and the wife of
Rafael Castro, another one of Castro Llanes’s sons. She made a
$20,000 illegal foreign conduit campaign contribution to the DNC,
and a $5,000 illegal conduit contribution to the Maryland State
Democratic Party in 1992.
E. Charles Intriago
The relationship between Castro Llanes and Intriago goes back
nearly two decades. After first meeting in 1980, Castro Llanes soon
became one of Intriago’s clients. Jorge Castro Barredo testified
about his social ties with Intriago, making reference to their
attending Florida Marlins baseball games together. Castro Barredo
also told Committee investigators that Intriago was paid a monthly
retainer by Castro Llanes of $20,000 to $25,000 per month and acted
as his legal advisor on all matters related to the United States. He
further stated that on one occasion, during the Venezuelan banking
crisis of 1994, he was instructed to pay Intriago $100,000 by either
Castro Llanes or his associate Luzmenia Briceno. In 1989, with the
help of an $80,000 investment from Castro Llanes in exchange for a
15 percent interest in the venture, Intriago founded the Money
Laundering Alert newsletter.
After getting caught up in a bitterly contested hostile takeover
fight for control of the Banco de Venezuela in 1990, Castro Llanes
turned to Intriago for help. He soon faced another potentially
critical problem and again turned to Intriago. In March of 1991,
U.S. Customs officials, suspicious of transactions taking place in
accounts held by a number of Venezuelan banks in New York, moved to
freeze the funds held by those banks. Banco Progreso’s account at
the Bank America International was among those affected. Intriago
put together what Jorge Castro Barredo described as a "Dream
Team" of attorneys and political operatives to obtain release
of the funds and was ultimately successful.
After being subpoenaed to appear before an executive session of
this Committee, Intriago declined to answer questions, invoking the
Fifth Amendment to virtually all questions posed. Intriago’s
attorney, did, however, submit a letter on behalf of Intriago to the
Committee, stating in part:
Mr. Intriago is not a government official. He has never held
a high elected or appointive government position. He has never
been an employee of, or consultant to, the Democratic National
Committee. He is not a "friend" or
"associate" of the President, the Vice President, or
any other high ranking Democratic Party official. He has not
applied for, been interviewed for or considered for a government
job. He has never had or sought a government contract. Mr.
Intriago simply is a respected private lawyer with a previously
unblemished record of conduct.
This statement, is at best, misleading. According to DNC
documents obtained by the Committee, Intriago is listed as an
"applicant" for a federal appointment. The documents
indicate that he was involved in the 1992 Florida Presidential
campaign, and that the recommendation was forwarded on December 16,
1992. It indicates his "JOB PREF./AREA OF INTEREST"
as "LEGL," likely indicating a legal job preference. It
indicates his "AGENCY/DEPARTMENT PREFERENCE" as
"Just," likely indicating the Department of Justice. The
notation also indicates under the title "Job Level", the
initials "SL," indicating a senior level position.
Similarly, the contention that Intriago has never been a
"high government official" understates his actual
employment history. He was a senior congressional staff member early
in his career, and served as a Special Assistant to the
Governor of Florida, playing a major role in the development
of that state’s racketeering laws. He also served as an Assistant
United States Attorney in Florida.
Mr. Intriago’s name also is listed in another DNC document
which is a compilation of recommendations for a delegation to attend
the 1994 Salvadoran election. Intriago’s name is first on the list
which also includes such dignitaries as Secretary of Energy Bill
Richardson, then Mayor of Albuquerque Martin Chavez, and prominent
DNC donor Walter Kaye. The Committee also obtained a letter dated
December 2, 1992, from Intriago to then DNC Chairman Ron Brown
addressed "Dear Ron," and stating:
Just a brief note to tell you that I enjoyed meeting you
during the campaign in Little Rock and Middleburg. Apparently, I
am now a "trustee" of the DNC and am looking forward
to assisting you in any way I can.
***
So that you will know a little more about me, I enclose a
couple of recent issues of my publication, Money Laundering
Alert, together with some background information. I think this
is an issue on which President Clinton can make some headway in
dealing with the drug and white collar crime problems.
II. CASTRO’S ILLEGAL CONTRIBUTIONS
On September 15, 1992, Charles Intriago called Jorge Castro
Barredo at his office in the Dominican Republic, and asked him to
make several contributions to the DNC. Castro Barredo recalls that
Intriago said either that "we are going to make some
contributions to Clinton’s campaign," or that "your
grandfather wants to make contributions to Clinton’s
campaign." Intriago told Castro Barredo that he and his uncle,
Rafael Castro, should make the contributions, because they were U.S.
citizens. At this point, Castro Barredo told Intriago that Rafael
did not have a bank account, but that Rafael’s wife, Maria Sire
Castro, had a bank account, and was a U.S. citizen. Intriago then
told Castro Barredo that he should write one check to the DNC for
$20,000, and another check to the Ohio State Democratic party for
$5,000. Intriago also told Castro Barredo to have Maria Castro write
a check for $20,000 to the DNC, and a check for $5,000 to the
Maryland State Democratic Party. After Castro Barredo’s telephone
conversation with Intriago, he requested that uncle have his aunt
draft the two checks that Intriago had requested.
Castro Barredo was slightly confused, however, by Intriago’s
instructions, and he asked Intriago to send a fax with written
instructions for how to draft the checks. Castro Barredo received
the fax the following day. On the fax, Intriago listed out each
contribution that Castro Barredo and Maria Castro were supposed to
make. At the bottom of the fax, Intriago wrote in Spanish: "I
want you to send me these today by Federal Express."
At the time that he made the contributions, Castro Barredo knew
that he and his aunt would be reimbursed. Castro Barredo had no
interest in politics, had never voted, and had no interest in giving
$25,000 to support any political party. Most importantly, during
their telephone conversation about the contributions, Intriago
assured Castro Barredo that he and his aunt would be reimbursed by
"one of his grandfather’s companies."
Several days after Castro Barredo sent the requested checks to
Intriago, Intriago called him and requested that he send a new
check. Intriago told Castro Barredo that he was not going to use the
$5,000 check Castro Barredo had written to the Ohio state party, and
instead, asked Castro Barredo to write a new $5,000 check to the
Kentucky State Democratic Party. On September 29, Castro Barredo did
so, and sent the check to Intriago. However, days later, Intriago
called again, and told Castro Barredo that he would not use the
Kentucky check, and instead, asked Castro Barredo to draft a $5,000
check to the Florida Democratic Party. Castro Barredo, exasperated,
asked why he had to keep writing new checks. Intriago responded
"that’s the way they want it." Castro Barredo did not
ask for any further explanation, and sent the requested check to
Intriago.
On September 24, 1992, Castro Barredo received a wire transfer to
his account for $24,990. Records indicate that the wire transfer
came from Inversiones Latinfin, a company owned by Orlando Castro
Llanes. Castro Barredo testified that Inversiones Latinfin does no
business in the United States.
A. The Castros’ Red Carpet Treatment
After his family contributed $50,000 to the Democratic Party,
Castro Llanes received red carpet treatment from the Clinton
Administration over the coming year. Immeditaely after Bill
Clinton’s election in 1992, Castro Llanes told Castro Barredo that
they were hopeful that Intriago would be appointed as ambassador to
Venezuela. While this goal did not come to fruition, Intriago did
give the Castro family increased access to Washington, D.C., after
President Clinton’s election.
Castro Llanes, Intriago and Castro Barredo all attended the
January 1993 inauguration of President Clinton. In October 1993,
Castro Llanes, Intriago, Castro Barredo and Castro Castro returned
to the United States. The first day that the group was in
Washington, Castro Llanes and Intriago went to the White House for a
reception for DNC donors. At this event, Castro Llanes had a picture
taken with President Clinton. Castro Barredo was not invited to this
event, even though it was he, not Castro Llanes, who had contributed
$25,000 to the DNC.
The following day, the Castro group traveled to the State
Department, where they met with State Department officials Perry
Ball and Monica Adler. It was Castro Barredo’s understanding that
Intriago had set up the meeting at the State Department. The purpose
of the meeting was to discuss the ongoing investigations of the
Castro family and the various allegations that had been leveled
against the family about money laundering.
B. Intriago’s Ties to the Democratic Party
Intriago himself made over $52,000 in contributions to the DNC
during the 1992 election cycle. These include contributions to the
Democratic State Central Committee of Maryland, the Democratic
Congressional
