Judge weighs whether Venezuela can pay Maduro’s legal costs in U.S. drug trafficking case

NEW YORK -- A U.S. judge pressed the Trump administration Thursday about its basis for barring Venezuela’s government from paying former President Nicolas Maduro’s legal fees in the drug trafficking case that has put him behind bars in New York.

As Maduro and Cilia Flores, his wife and co-defendant, looked on in beige jail uniforms, his lawyers argued that the U.S. is violating the deposed leader’s constitutional rights by blocking Venezuelan government money from being used for the couple’s legal costs. The U.S. government hasn’t let the funds flow because of sanctions against the South American country.

Judge Alvin Hellerstein questioned why the prosecution’s argument still stands, now that U.S. and Venezuelan relations have warmed. Since Maduro’s capture by U.S. military forces in January, Venezuela and the U.S. have reestablished diplomatic relations, Washington has eased economic sanctions on Venezuela’s crucial oil industry, and the U.S. has dispatched a charge d’affaires to Caracas.

“We have changed the situation in Venezuela,” Hellerstein observed, suggesting that the argument for continuing to block the defence funds has changed with it: “The current paramount goal and need and constitutional right is the right to defence.”

He didn’t issue a ruling, however, nor say when he will.

As supporters and opponents rallied outside, Maduro and Flores made their first court appearance since a January arraignment at which he declared: “I am not guilty. I am a decent man, the constitutional president of my country.” Flores has also pleaded not guilty.

A 25-page indictment accused Maduro and others of working with drug cartels and members of the military to facilitate the shipment of thousands of tons of cocaine into the U.S. He and Flores also are accused of ordering kidnappings, beatings and murders of those who owed them drug money or undermined their trafficking operation. If convicted, they face life in prison.

Maduro and Flores remain jailed in Brooklyn, and neither has asked to be released on bail. Hellerstein has yet to set a trial date.

• READ MORE: ‘This changes everything’: Here’s how Canada could be impacted by the U.S.’ abduction of Maduro
• READ MORE: How cocaine and corruption led to the indictment of Maduro

Rallies held before court hearing

In a noisy scene outside the Manhattan courthouse, contrasting groups of demonstrators chanted, blew horns and beat drums and cowbells. Among Maduro critics, one person waved a sign reading “Maduro rot in prison.” On the other side of a metal barrier, people held signs reading “Free President Maduro.”

In Caracas, hundreds of people gathered at a public plaza, including ruling party supporters, state employees and civilian militia members. One attendee, retiree Eduardo Cubillan, said he was there to pray for Maduro and Flores and condemn the violation of Venezuela’s sovereignty during the Jan. 3 operation.

“We hope that in the United States, if justice truly exists, a trial will be held that will lead to President Maduro’s freedom, because this kidnapping violated international legal principles, and we want justice to be served,” Cubillan, 80, said.

Maduro, 63, and Flores, 69, continue to enjoy some support in Venezuela, with murals and billboards across Caracas demanding their return. But while Maduro’s ruling party remains in power, he has slowly been erased from the government of Delcy Rodriguez, Venezuela’s acting president.

Rodriguez has replaced senior officials including Maduro’s faithful defence minister and attorney general. She has reorganized agencies, appointed ambassadors and eliminated tenets of the self-proclaimed socialist movement that has ruled Venezuela for more than two decades.

In court Thursday, Hellerstein cut off Flores’ lawyer, Mark Donnelly, when he referred to her as “the first lady,” telling him: “There are no titles to be used in this court.”

As the hearing was ending, Maduro held up two fingers in a “V,” a gesture that has become a symbol in Venezuela -- portrayed in murals with the slogan “Nosotros Venceremos,” or “We Shall Overcome,” since he flashed it upon arriving in New York in January.

“Hasta manana,” he said, shaking hands with Pollack before officers escorted him out.

• READ MORE: Venezuela’s acting president says she has had ‘enough’ of U.S. orders
• READ MORE: Maduro says ‘I was captured’ as he pleads not guilty on drug trafficking charges

Funding for defence a key early issue

In court, Assistant U.S. Attorney Kyle Wirshba noted that the sanctions, in place long before Maduro and Flores were charged, were driven by allegations that Maduro’s government was cracking down on free speech and plundering Venezuelan wealth.

Allowing them to use Venezuelan government funds to defend themselves in a case arising from that conduct would “undermine the sanctions,” Wirshba said.

The U.S. has said Maduro and Flores can use personal funds to pay his lawyers. They have said they don’t have the money.

Maduro lawyer Barry Pollack contended that if Maduro got public defenders, investigating and preparing his case would sap legal resources meant for people who can’t afford their own attorneys. That doesn’t make sense, he contended, in “a case where you have someone other than the U.S. taxpayer standing ready, willing and able to fund that defence.”

Pollack wants the case thrown out, but Hellerstein ruled out doing so -- at least for now, saying he didn’t want to consider “such a serious step” when another remedy is available. He said Pollack could revisit the request if the U.S. Treasury Department doesn’t relent on its decision to bar Venezuela from paying Maduro’s legal fees.

In a court filing last month, Pollack said the U.S. Treasury Department’s Office of Foreign Assets Control, which administers sanctions, flip-flopped on a decision to let Venezuela pay for his legal fees. The office approved the arrangement Jan. 9, Pollack said, but then rescinded it without explanation less than three hours later.

• READ MORE: What message does the U.S. capture of Maduro send to China?
• READ MORE: A US$400,000 payout after Maduro’s capture is putting prediction markets in the spotlight

Trump comments on the case

During a Cabinet meeting Thursday in Washington, U.S. President Donald Trump accused Maduro of being a “major purveyor of drugs coming into our country.”

Trump said Maduro would be given “a fair trial.”

Maduro and Flores were seized in a middle-of-the-night raid on their Caracas home.

Post-Maduro, everyday life for most Venezuelans remains the same.

Many public sector employees earn just about US$160 per month, while the average private sector worker makes about US$237. Last year the annual inflation rate soared to 475 per cent, according to Venezuela’s central bank, putting the cost of food and other essentials beyond the reach of many.

• READ MORE: Protesters in Canada hold different opinions of Nicolás Maduro
• READ MORE: Venezuela has detained several Americans as tensions with U.S. rise

------

By Michael R. Sisak, Jennifer Peltz And Regina Garcia Cano

Garcia Cano reported from Caracas. Associated Press writer Dave Collins in Hartford, Connecticut, contributed to this report.