Venezuelan Mill Supply Arrests

The Justice Department announced today the arrests of two men on charges of conspiracy to violate U.S. sanctions, smuggling, and international money laundering. The arrests stem from a scheme to supply restricted industrial goods to Complejo Siderúrgico de Guayana S.A. (COMSIGUA), a sanctioned Venezuelan state-owned steel manufacturer.

According to the unsealed federal complaint, Juan Carlos Cairo-Padron,  a Venezuelan national and U.S. lawful permanent resident, and Michael Fortinberry,  a U.S. citizen, conspired since at least 2022 to export chemical catalysts and industrial equipment to COMSIGUA and other sanctioned Venezuelan entities. The alleged scheme involved the use of front companies, concealed end-users, falsified shipping documentation, and foreign financial transactions routed through Spain, China, and Germany.

The defendants allegedly operated through entities including DRI Reformers and Reformer Technologies, using Chinese suppliers and logistics chains to ship industrial materials directly to Venezuela. On at least one occasion, restricted goods were shipped from the U.S. to Venezuela in violation of export control laws.

Prosecutors allege that Cairo and Fortinberry laundered millions of dollars through a network of foreign bank accounts to obscure the source, destination, and control of the transactions, in furtherance of their sanctions evasion.

If convicted, both men face up to 20 years in prison for sanctions and money laundering violations and 10 years for smuggling.

 View the criminal complaint.