How does a legitimate businessperson become an INTERPOL target? In this series, we’ll consider a case originating in the U.S. to demonstrate how an ordinary business dispute can lead to a criminal matter, which can lead to a Red Notice. 

From building a business to INTERPOL Involvement

The process by which civil disputes can become criminal cases is exemplified in a  recent case wherein Celestino Diaz sought to build a business in New York. He envisioned and began a Venezuelan-style restaurant, “Areppas,” which would eventually expand into a 15-store chain. One major investor in this idea was Omar Gerardo Camaro, a member of the family behind Televen, one of Venezuela’s largest television networks. The two families had reportedly known each other for decades. 

After COVID-19 restrictions led to the business’s closure, Mr. Camero sought to recover his investment and took the resulting dispute to arbitration in New York. Arbitration is a civil mechanism in which a neutral third party makes a legal decision regarding the dispute.  The parties reportedly signed an agreement dismissing the arbitration without prejudice. The agreement also provided Whiteswan (Mr. Camero’s company) and its forensic examiners with access to Areppas’ financial information and certain personnel. The agreement did not adjudicate the merits of Mr. Camero’s allegations.

Civil dispute takes an international turn before becoming criminal

Following this, Mr. Camero reportedly filed a private criminal complaint in Venezuela, accusing Mr. Diaz of fraud related to the Arrepas Restaurant investment. Mr. Diaz argues that Mr. Camero is attempting to turn a civil pursuit into a criminal prosecution.  

One Venezuelan court found that there had not been a sufficiently thorough criminal investigation and that the evidence wasn’t enough to establish that Diaz had committed a crime. Another court said it didn’t have jurisdiction because the dispute was essentially civil/commercial and had already been addressed through arbitration. Prosecutors still continued pursuing the matter through another court, which eventually resulted in an arrest warrant for Diaz. Venezuela then requested and obtained an INTERPOL Red Notice against Diaz.

Mr. Diaz has now sued Mr. Camero and two companies tied to Televen, alleging that Mr. Camero utilized a dispute over his $1.09 million investment in the restaurant chain into a years-long campaign to force Mr. Diaz into paying him millions more than he invested, using threats, Venezuela’s criminal-justice system and, ultimately, his family’s media company to apply pressure. Although these claims remain alleged, they illustrate how a monetary dispute can ultimately lead to INTERPOL involvement. 

But is it proper grounds for a Red Notice?

INTERPOL is not meant to – and does not want to – assist in cases that are primarily civil disputes without an overriding criminal element. In cases where business owners disagree about contractual compliance, investment returns, or other civil matters, INTERPOL is likely to decline involvement. The reason INTERPOL may become involved improperly in a civil matter often has to do with the complainant’s characterization of the case as having some criminal component. In business disputes, the alleged component is often fraud, misappropriation, or embezzlement. In those cases, it is only when the subject of the notice proves the true nature of the dispute to INTERPOL’s CCF – which is after the notice has been issued- that INTERPOL actually has all of the information available regarding the case.

Consequences of a Red Notice

Even if INTERPOL considers and later deletes a Red Notice, the subject of the notice has often already suffered the collateral consequences of the notice. According to Mr. Diaz’s lawsuit, the Department of Homeland Security revoked his Global Entry account, presumably following the Red Notice. Mr. Diaz says he has since avoided international travel because he fears being detained and potentially extradited to Venezuela. Gazsó von Klingspor, a Venezuelan Attorney in Miami, said INTERPOL headquarters in France has since temporarily blocked access to the Red Notice while reviewing it.  

Our next post will continue on this topic.

As always, thoughts and comments are welcomed.