Bankers Accused in Oil-Linked Fraud Case Remain Jailed in Venezuela Despite Court-Ordered Release, Highlighting Limits of U.S. Influence

Two Venezuelan bankers accused in a multibillion-dollar oil-linked fraud case remain imprisoned in Caracas despite a court order for their release, underscoring persistent gaps in the rule of law and raising questions about the extent of the Trump administration's influence in the country following the ouster of Nicolás Maduro, as a new sprawling report from WLRN Public Media has revealed.

Carmelo and Daniel De Grazia, arrested in April 2024 and held in Caracas' Rodeo I prison, were ordered transferred to house arrest by a Venezuelan judge on March 16. However, prison authorities have refused to comply.

"It indicates to me that there is still no rule of law in Venezuela, that we don't know who's in control," said attorney Raul Valdes-Fauli, who represents the family in the United States to WLRN Public Media.

The brothers were accused by the Maduro-era government of participating in a $21 billion money-laundering scheme tied to state oil company Petróleos de Venezuela, allegedly involving cryptocurrency transactions used to evade U.S. sanctions. The De Grazia family denies the allegations, and prosecutors have not publicly presented evidence supporting the charges.

Family members describe deteriorating conditions in detention. "My father went into prison... weighing close to 190 pounds, and now he weighs less than 120 pounds," said Carmelo De Grazia Parra, adding, "I don't think I exaggerate when I say that my father is dying."

The case has become a focal point for broader concerns about Venezuela's political transition under interim President Delcy Rodríguez. While Washington has described her government as a partner in stabilizing the country after Maduro's capture, analysts point to internal divisions that limit centralized authority.

A recent Op-ed by political analyst Andres Oppenheimer for The Miami Herald noted that Rodríguez has consolidated control over key institutions while benefiting from improved oil revenues following eased U.S. sanctions. "Delcy Rodriguez won't leave if she's not forced to do so," Polga-Hecimovich told Oppenheimer at the time. "She's not a small-d Democrat. She never believed in elections. She never believed in democracy. Why would she suddenly believe in them now?"

Observers say the De Grazia case illustrates the limits of U.S. leverage. "This show of force tells you who owns the imprisonment," said journalist Francisco Poleo, adding that resolving such cases may require negotiation rather than direct intervention.

For U.S. officials, the situation presents a contradiction. While the administration has emphasized control over Venezuela's transition and economic recovery, cases like this suggest that authority remains fragmented. As Valdes-Fauli put it, "If the Trump administration's going to take control of Venezuela... they should try to clean the country up, too."