Two brothers who both served as Citgo vice presidents have filed a $400 million suit in Texas, accusing their former employer of conspiring with Venezuela’s authoritarian government to falsely convict them of financial crimes, resulting in their wrongful imprisonment for nearly five years.
Allegations of Wrongful Imprisonment
Alirio Jose Zambrano and Jose Luis Zambrano claim they endured “1,775 days of wrongful detention in draconian, inhumane conditions, with tragic and long-lasting consequences” after Citgo’s leadership in 2017 allegedly conspired to scapegoat innocent company executives during President Nicolás Maduro’s “purge” campaign within the state-owned Petróleos de Venezuela SA (PDVSA), according to the complaint filed in Harris County District Court.
Ex-Citgo Execs $400M Suit : Economic Crisis and Political Intrigue
At the time, Venezuela was experiencing an economic crisis, and PDVSA—the country’s main income generator and Citgo’s parent company—was burdened with massive debts. The suit states that PDVSA had pledged Citgo shares to creditors due to collapsing cash flow and poor management. U.S. financial sanctions in August 2017 further exacerbated the crisis.
Ex-Citgo Execs $400M Suit : The Plot to Purge Executives
The complaint details how Maduro’s regime, facing a substantial threat to his reelection, decided to “purge” executives in both PDVSA and Citgo to deflect responsibility for the financial turmoil. Citgo’s leadership allegedly conspired to have innocent executives, including the Zambrano brothers, take the fall. This led to a mandatory business trip from Texas to Venezuela under false pretenses.
The Arrest of the Citgo 6
During a meeting at PDVSA headquarters on Nov. 21, 2017, the Zambrano brothers and four other executives—known as the Citgo 6—were taken into custody by masked Venezuelan government guards. The six were accused of unauthorized debt refinancing. Venezuela’s Attorney General Tarek William Saab falsely alleged they had signed an international agreement to secure $4 billion in loans under conditions detrimental to PDVSA.
Ex-Citgo Execs $400M Suit : Exposing the Fabrications
“These accusations were all later publicly exposed as complete fabrications,” the Zambranos stated. They asserted that Citgo knew the executives were innocent and that the Zambranos had no role or responsibility related to corporate finances.
Abandonment and Torture
The company abandoned the brothers, who collectively had worked for Citgo for over 40 years, in the Venezuelan prison system. The complaint states they were subjected to “unfathomable mental and physical torture” for nearly five years. Following a trial lacking evidence, the Citgo 6 were found guilty and sentenced to eight years and 10 months in prison. U.S. lawmakers and human rights groups denounced the sentence.
Ex-Citgo Execs $400M Suit : Release and Ongoing Impact
The Zambranos, U.S. citizens and Texas residents, were released on Oct. 1, 2022. They said Citgo grossly neglected its responsibilities, inflicting emotional distress on the Zambranos and their families, especially their daughters who were deprived of five years with their fathers.
Legal Action and Claims
The lawsuit, filed by the brothers, their daughters, and Alirio Jose’s wife, includes claims of negligence, gross negligence, conspiracy, aiding and abetting, wrongful detainment, intentional infliction of emotional distress, and fraud. It seeks more than $400 million in actual damages, as well as exemplary damages and compensation for medical expenses, physical pain, mental anguish, physical impairment, and disfigurement.
Ex-Citgo Execs $400M Suit : Statements from Legal Counsel
Randall Sorrels of Sorrels Law, representing the family, stated, “The Zambranos acted in accordance with Citgo’s directives, trusting defendants with their lives, and Citgo betrayed that trust.” Eric Gerard, another Sorrels Law partner, emphasized, “The most damning piece of evidence is that the Citgo vice president actually responsible for financing decisions was never arrested.”
Previous Legal Actions
This suit is not the first. Former Citgo Vice President Tomeu Vadell filed a $100 million suit last March, accusing Citgo of conspiring with the Venezuelan government and wrongfully imprisoning him.
Ex-Citgo Execs $400M Suit : Case Information
The Zambrano family is represented by Randall O. Sorrels and Eric K. Gerard of Sorrels Law. Counsel information for Citgo was not immediately available. The case is Alirio Jose Zambrano et al. v. Citgo Petroleum Corp. et al., case number unavailable, in the District Court of Harris County, Texas.
