Demanda Venezuela Juan Montes

UNITED STATES DISTRICT COURT DISTRICT OF CONNECTICUT

JOHN J. CARNEY, IN HIS CAPACITY AS COURT-APPOINTED RECEIVER, FOR HIGHVIEW POINT PARTNERS, LLC, MICHAEL KENWOOD GROUP, LLC, MK MASTER INVESTMENTS LP, MK INVESTMENTS, LTD., MK OIL VENTURES LLC, MICHAEL KENWOOD CAPITAL MANAGEMENT, LLC; MICHAEL KENWOOD ASSET MANAGEMENT, LLC; MK ENERGY AND INFRASTRUCTURE, LLC; MKEI SOLAR, LP; MK AUTOMOTIVE, LLC;MK TECHNOLOGY, LLC; MICHAEL KENWOOD CONSULTING, LLC; MK INTERNATIONAL ADVISORY SERVICES, LLC; MKG-ATLANTIC INVESTMENT, LLC; MICHAEL KENWOOD NUCLEAR ENERGY, LLC; MYTCART, LLC; TUOL, LLC; MKCM MERGER SUB, LLC; MK SPECIAL OPPORTUNITY FUND; MK VENEZUELA, LTD.; SHORT TERM LIQUIDITY FUND, I, LTD. Plaintiff, v. JUAN S. MONTES, a.k.a. “BLACK,” and MOVILWAY S.L., Defendants.

Civil Action No.

JURYTRIAL DEMANDED

COMPLAINT John J. Carney, Esq. (the “Receiver”), 1 as Receiver to the Michael Kenwood Group LLC (the “MK Group”) and certain affiliated entities (the “Receivership Entities”) 2 in Securities and Exchange Commission v. Illarramendi, Michael Kenwood Capital Management, LLC et al., C.A. No. 3:11-cv-00078 (JBA), (the “SEC Action”) by and through his undersigned counsel, alleges thefollowing: SUMMARY OF CLAIMS 1. This lawsuit is part of the Receiver’s continuing efforts to trace, recapture and

return investor proceeds stolen from investment funds managed and operated as a Ponzi scheme by Francisco Illarramendi (“Illarramendi”) and other individuals affiliated with the MK Group and Highview Point Partners, LLC (“HVP Partners”). Through this complaint, the Receiver seeks thereturn of bribes and other fraudulent transfers totaling $35,744,651 (collectively, the “Transfers”), as set forth in Exhibit A attached hereto. Illarramendi made these bribe payments, directly or indirectly, to defendant Juan S. Montes (“Montes” or “Defendant”), a senior pension fund investment manager and official at Petróleos de Venezuela, S.A. (“PDVSA”). As described in further detail below,Defendant Montes received these bribes in exchange for his approval of certain bond-swap transactions PDVSA’s pension funds entered into with Receivership Entities.

1

Unless otherwise explicitly defined herein, the Receiver adopts for purposes of this complaint the defined terms as set forth in the Amended Receiver Order dated January 4, 2012 (Docket #423).

2

The Receivership Entitiesinclude: Highview Point Partners, LLC; MK Master Investments LP; MK Investments, Ltd.; MK Oil Ventures LLC; The Michael Kenwood Group, LLC; Michael Kenwood Capital Management, LLC; Michael Kenwood Asset Management, LLC; MK Energy and Infrastructure, LLC; MKEI Solar, LP; MK Automotive, LLC; MK Technology, LLC; Michael Kenwood Consulting, LLC; MK International Advisory Services, LLC; MKGAtlanticInvestment, LLC; Michael Kenwood Nuclear Energy, LLC; MyTcart, LLC; TUOL, LLC; MKCM Merger Sub, LLC; MK Special Opportunity Fund; MK Venezuela, Ltd.; Short Term Liquidity Fund, I, Ltd.

2

2.

In an attempt to conceal the true nature of the bribes to Montes, Illarramendi

falsely described these payments variously as investments or payments for professional fees. In addition, Illarramenditransferred $5,080,161 for the benefit of Montes to Movilway S.L. (“Movilway,” collectively with Montes “Defendants”). This transfer to Movilway represented a kickback to Montes made with money misappropriated from the MK Group and HVP Partners. The Defendants benefitted, either directly or indirectly, from the fraudulent transfers alleged herein. 3. Montes managed and controlled the investmentportfolios of at least three of

PDVSA’s pension funds. Illarramendi made these bribe payments and other fraudulent transfers to Montes for the opportunity to have PDVSA’s pension funds participate in various bond-swap transactions. These transactions gave Illarramendi temporary financial liquidity he needed to sustain the Ponzi scheme and continue to conceal massive losses. 4. These illicit...