DOJ: Former US Congressman Sentenced to 10 Years in Federal Prison for Secretly Acting as Agent of Venezuelan Government

• Rivera and co-defendant Esther Nuhfer obtained a $50 million contract with a PDVSA subsidiary to lobby U.S. officials without registering under FARA.
• Rivera deposited approximately $1.5 million in contract proceeds into his campaign account, while Nuhfer used $455,000 to purchase a residence.

David Rivera, a former U.S. Congressman, was convicted and sentenced to 10 years in federal prison for conspiring to violate the Foreign Agents Registration Act (FARA), money laundering, and engaging in transactions with criminally derived property. Rivera and Esther Nuhfer secretly acted on behalf of the Venezuelan government, lobbying U.S. officials and arranging meetings with high-ranking Venezuelan leaders without proper registration.

Rivera and Nuhfer received a $50 million contract from a subsidiary of Venezuela’s state-owned oil company, PDVSA, to advance the Maduro regime’s interests in the U.S. Rivera deposited approximately $1.5 million of the proceeds into his campaign account, while Nuhfer used $455,000 to buy a residence. Nuhfer was previously sentenced to 60 months in federal prison for related offenses.

• $50 million contract with PDVSA subsidiary
• $1.5 million proceeds deposited to Rivera's campaign account
• $455,000 proceeds used by Nuhfer to purchase residence

• Review all client and third-party relationships for undisclosed ties to Petróleos de Venezuela, S.A. (PDVSA) or its subsidiaries.
• Screen for transactions involving campaign accounts receiving large sums from foreign contracts, especially those linked to Venezuela.
• Ensure all lobbying or political activity on behalf of foreign entities is registered under the Foreign Agents Registration Act (FARA) and monitor for coded communications.

This case highlights the critical importance of detecting and reporting covert foreign influence and money laundering activities, especially those involving politically exposed persons (PEPs) and state-owned entities like PDVSA. Compliance officers must be vigilant for unregistered lobbying, large unexplained transfers to campaign accounts, and the use of coded language to conceal illicit activities. The enforcement actions and severe penalties underscore the risks of failing to comply with FARA and anti-money laundering laws, reinforcing the need for robust due diligence and monitoring procedures.