Alex Saab pleads guilty to money laundering in deal with US prosecutors

Colombian businessman Alex Saab, a close associate of former Venezuelan President Nicolas Maduro, pleaded guilty Tuesday to money laundering charges in a US federal court in Miami as part of a deal with prosecutors, according to court documents and authorities.

Saab agreed to cooperate with US investigations and forfeit $195 million in illicit proceeds under the plea agreement.

The 54-year-old admitted to a single count of money laundering linked to a scheme involving Venezuelan government contracts to import food.

US prosecutors accused Saab of using fictitious companies and falsified shipping records to divert funds from government contracts. The scheme was also linked to bribes paid to Venezuelan officials.

The case centers on the Venezuelan government's CLAP food program, which was created to provide subsidized food to millions of Venezuelans during the country's economic crisis.

Prosecutors alleged that Saab and his associates used shell companies and bank accounts in the US to move and conceal proceeds from the scheme.

Saab previously pleaded not guilty to the charges. His change of plea came after a federal judge in Miami scheduled a hearing Tuesday and canceled a planned trial.

The guilty plea marks a new development in the long-running US investigation into Saab, whom American authorities have described as a key financial intermediary for Maduro.

Saab was first charged by US authorities in 2019 and arrested in Cape Verde in 2020 while traveling to Iran. He was extradited to the US in 2021.

In 2023, former US President Joe Biden pardoned Saab as part of a prisoner exchange that secured the release of several Americans detained in Venezuela.

Saab was later returned to US custody after Venezuelan authorities deported him in May amid renewed American pressure.

His cooperation with US investigators could make him a potential witness in other cases involving Venezuelan officials, including the prosecution of Maduro, who is facing drug trafficking charges in the US.

The plea comes as Washington continues to reshape its relations with Venezuela following Maduro's removal from power earlier this year.