Mr. Igbinedion, who stole his state blind while he was 
governor, has now been scammed of billions by Venezuelan fraudsters in a
 classic 419 deal
———————————————–
Nemesis may have finally caught up with ex-convict and former 
Governor of Edo State, Lucky Igbinedion, as he has lost over N3.3 
billion to Venezuelan fraudsters, in a deal that bears all the marks of a
 classic 419 scam, PREMIUM TIMES can authoritatively reveal.
Court documents seen by PREMIUM TIMES also suggest that Mr. 
Igbinedion may be insolvent, as two US-based law firms have walked away 
from a $600 million lawsuit he instituted against the alleged mastermind
 and the Venezuelan state owned oil company, Petroleos De Venezuela S.A 
(PDVSA), over his inability to pay retainer as low as  N627,000.00 
($3,800.00).
Mr. Igbinedion plundered Edo State treasury for the eight years he 
was governor. He escaped jail after he reached a controversial plea 
bargain agreement with the Farida Waziri-led Economic and Financial 
Crimes Commission, EFCC, which dropped all but one of the 191 charges of
 corruption and money laundering against him.
In 2008, a Federal High Court in Enugu sentenced him to six months in
 prison with the option of a N3.5 million fine. The controversial plea 
bargain agreement he reached with the EFCC also required that he return 
N500 million and three of the houses he acquired with stolen public 
funds to the Federal Government.
But it’s not yet Uhuru for Mr. Igbinedion as the Court of Appeal in 
Benin ruled on April 9, 2014 that he has a case to answer over a fresh 
66-count money laundering and financial impropriety suit brought against
 him by the EFCC. A Federal High Court had ruled in 2011 that it would 
amount to double jeopardy and abuse of court process to try him again 
after the plea bargain he entered with the EFCC.
He has been accused of stealing over N3 billion from Edo State’s treasury.

Two of a kind: James Ibori (left), Lucky Igbinedion (right). Both are confirmed thieves.
 
Classic 419-scam
In 2006, looking to cash in on the lucrative but fraud-tainted fuel 
importation business, the ex-governor’s front and Managing Director of 
Skanga Energy and Marine Limited, a company formed by Mr. Igbinedion and
 his brother, Bright, in 1992, Christian Imoukhuede, approached the then
 Venezuelan Trade Consul to Nigeria, Enrique Arrundell, about the 
prospect of importing petrol, aviation fuel, and diesel from the South 
American country.
According to documents filed with a US District Court in New York, 
Mr. Arrundell advised Mr. Imoukhuede that the best way to get fuel was 
to go through a PDVSA approved agent.
Mr. Arrundell then introduced Mr. Imoukhuede to Arevenca, a 
fraudulent firm owned by alleged notorious Venezuelan conman, Francisco 
Gonzalez.
That meeting with Mr Gonzalez marked the beginning of Mr Igbinedion’s woes.
Mr. Igbinedion and his front, Mr. Imoukhuede claimed in court that 
they did due diligence checks on Arevenca through the Venezuelan embassy
 in Abuja. They claim that embassy officials confirmed Arevenca as a 
reputable Venezuelan business concern and validated documents provided 
by Arevenca that supposedly showed a relationship with PDVSA.
But it has since turned out that Arevenca might be a complete fraud. 
PDVSA has since said in court that it has no records of any relationship
 with Arevenca.
Arevenca is a registered corporation under Venezuelan law but was 
most recently headquartered in Aruba. Its subsidiaries are: Arevenca 
AKTM, registered in British Virgin Islands; Arevenca SL, registered in 
Spain; and Arevenca Aruba Holding NV.
Others are Arevenca Bank, Arevenca Foundation, Fly Aruba Suriname, 
Arevenca Mining and Arevenca Petroleum Company registered in offshore 
tax haven, Suriname. There is Arevenca Finances Holding registered in 
Switzerland and Arevenca Ivory Coast.
Many of these subsidiaries are shell companies or exist only in names.
A Canadian-based freelance journalist, Steven Bodzin, who worked as 
an energy reporter in Venezuela and has written a number of exposés on 
Arevenca, revealed that Arevenca’s website is a repository of 
mind-numbing lies meant to hoodwink mostly unsuspecting international 
investors.
For instance, on its website, Arevenca claims to have a global 
refining capacity of 2.5 million barrels per day and plans to build a 
two million barrel per day refinery in Ivory Coast.
It also claims to have a fleet of 72 ships.
However, the company with the highest refining capacity in the world 
as at September 2013, Reliance Jamnagar Refinery, India, has a refining 
capacity of only 1.24 million barrels per day.
In fact, Arevenca is not listed among the top ten refineries in the 
world. The only Venezuela-based refinery in the top 10, Paraguana 
Refining Centre, belongs to PDVSA and has a processing capacity of just 
955,000bpd.
And despite claiming to have 75 vessels, a PREMIUM TIMES search on 
Lloyds Ship Directories shows that Arevenca does not operate from any of
 Venezuelan’s 16 ports. There is also no proof that the company is 
building a two million barrel per day refinery in Ivory Coast as it 
claimed.
These are just few of the web of lies contained in 
Arevenca’s website. Other false claims made by the company to defraud investors can be found on 
Mr. Bodzin’s blog.
In October 2006, Mr. Imoukhuede, who was Mr. Igbinedion’s schoolmate,
 arrived at the Simon Bolivar International Airport in Caracas and was 
ushered into the VIP lounge of the facility and later given a luxury 
ride to the exquisite InterContinental Tamanaco, rated among the top 
three hotels in the country.
It was at Intercontinental Tamanaco that Mr. Imoukhuede had initial negotiation with Mr. Gonzalez and an unnamed Nigerian.
After the meeting, Skanga reached a tentative agreement to buy 
“petroleum products” from Arevenca. Arevenca also agreed to give Skanga 
the first right of refusal to buy its AGO (diesel), PMS (premium motor 
spirit) DPK (kerosene), Jet Al fuel, Bitumen and Fuel oil.
The deal was to take off with a 35,000 metric tones of AGO in the 
first instance and then grow into about three cargoes monthly, according
 to an official statement by Skanga.
Bank transfer documents show that Skanga paid $1.05 million of the $1.4 million cost of freight.
Skanga’s officials claimed during interrogation in court that their 
company made these payments ($580,000 and $470,000) based on the proof 
of certain “inducement documents which included an alleged PDVSA bill of
 lading.
After Skanga made these initial payments, it became trapped. The 
duping of the former governor and his corrupt clan began in full swing.
Igbinedion goes to Caracas
In January 2007, four months before the expiration of his 
governorship term, Mr. Igbinedion travelled to Caracas, ostensibly on an
 official visit and possibly lavishing Edo state money on the deal.  But
 our investigations indicate the visit was to put finishing touches to 
the deal earlier reached by his front three months earlier.
According to the Bolivarian News Agency (ABN), Mr. Igbinedion and his
 entourage were purportedly met by some of the influential “Chavista” 
politicians in the country, as supporters of the late Venezuelan leader,
 Hugo Chávez, are called: the Mayor of Central Caracas, Freddy Bernal, 
the Governor of Miranda, Diosdado Cabello, and Deputy Foreign Minister 
for Africa, Reinaldo BolÃvar as well as other top Venezuelan government 
officials and businessmen.
It was an elaborate event accompanied by lavish photo op, expensive 
alcohol and dinner in the evening at the “Gran Melia Hotel, another top 
three luxury hotel in Venezuela, according to luxury hotel reservations 
website, Five Star Alliance.
Mr. Igbinedion was handed the key to the city of Caracas and 
announced as the “AlcaldÃa de Libertador”, the honorary Mayor of the 
central Caracas borough of Libertador. He also held a meeting with top 
officials of the Venezuelan Foreign Ministry at their headquarters, the 
Yellow House.
But the whole fanfare was a grand charade and part of a well 
orchestrated confidence trick put together by some of the most devious 
conmen in Latin America.
It later appeared that Mr. Gonzalez received an intensive course on 
Nigerian niceties.  Emails from Mr. Arrundell and Gonzalez to Mr. 
Igbinedion have that uniquely Nigerian informality. Rather than write in
 a formal manner as one would have expected of parties in a 
multi-million dollar deal, they addressed Mr. Igbinedion as “My brother 
Lucky” or “Dear brother Lucky.”
One letter by Mr. Gonzalez, filled with grammatical errors, reads:
Dear brother lucky
I already send the dignity signed invoice.
You know what this 
mean.
Nobody do this, but I always honored my word, agins all the 
logical and normal status.
I prefer died that do not honored my 
word.
This is another demonstration that I am a honor man.
That mean 
that the product is yours.
I trust you like a brother I hope you do not 
let me down.
I do not want disappoint you, I hope you do not disappoint 
me.
Best regards, 
You brother and friend
Francisco JAvier Gonzalez
The geniality of Mr. Gonzalez’s letters coupled with the grand 
reception, some would say deception, he got during his “official” visit 
to Caracas apparently made Mr. Igbinedion even more trusting of the 
Venezuelan gang.
Nigerian thief, money launderer, is scammed
After a couple of other meetings later that year, Arevenca made 
Skanga a deal too good to be true: a consignment of 35,000 metric tonnes
 of diesel will be sent to Skanga.
All it needed to do was to prepay the charges for delivery and complete the full payment for the delivery in three months.
Mr. Igbinedion could not believe his luck. Skanga promptly 
transferred $19.6 million more to Arevenca’s Swiss bank account as 
freight charges and partial payment for two consignments of Petrol and 
diesel aboard two vessels named “Digniti” and “Ventur.”
The vessels never arrived.
The Nigerian Port Authority said it does not have any record of 
“Digniti” or “Ventur” entering Nigerian waters at the time it was billed
 to arrive.
In fact, PREMIUM TIMES investigation reveals that there are no vessels named “Dignitii” or “Ventur”.
Searches on Lloyds directories and other ship directories show that the ship don’t exist anywhere in the world.
All efforts made to contact the Venezuelan embassy to confirm the 
extent to which Mr. Arrundell, who has been posted out of the country, 
was involved in the scam was unsuccessful.
The embassy’s phone number seems to be out of order and emails were returned as undelivered.
Mr. Imoukhuede declined to comment when contacted by PREMIUM TIMES. 
He explained that since the case is in court, Skanga’s lawyer was in the
 best position to make public comments on the matter.
“You know the case is in court. I don’t think I am at ease to talk 
about it. I would have to talk to the lawyer. I can’t make any comment. 
The Nigerian legal system is different from the American system. The 
best thing is to talk to Femi Salu,” he said.
EDITOR’S NOTE: The remaining parts in this series will look 
at courtroom intrigues; how two of Igbinedion’s American counsel 
abandoned the case due to his inability to pay their retainer. 
A part will look at the role played by MRS Oil Nigeria 
Limited plus interesting revelations in court while another will take a 
look at the role of the Venezuelan authorities in the entire scam.
Source: PREMIUM TIMES