Steel Sanctions Bust: Duo Charged in Venezuela Smuggling Scheme

In a significant federal enforcement action, a Venezuelan national and a US citizen have been arrested for allegedly orchestrating a complex transnational sanctions evasion scheme aimed at illegally supplying industrial goods to Venezuela’s sanctioned steel and petrochemical industries. The move underscores intensified scrutiny of global trade routes enabling embargoed regimes to circumvent international restrictions.

Defendants Accused of Sanctions Violations, Smuggling & Money Laundering

Juan Carlos Cairo-Padron, 56, a lawful US permanent resident of Venezuelan origin based in Huntsville, Texas, and Thomas Michael Fortinberry, 51, a US citizen from Decatur, Alabama, were taken into custody on 13 June 2025. The arrests followed a federal criminal complaint filed in the Southern District of Texas alleging violations of United States sanctions, smuggling, and conspiracy to commit money laundering

According to court documents, the two men conspired to supply chemical catalysts, industrial equipment, and related services to Venezuelan state-owned entities subject to US sanctions. Among the primary beneficiaries was Complejo Siderúrgico de Guayana S.A. (COMSIGUA), a state steelmaker blacklisted by Washington.

Complex Web of Front Companies & Foreign Transactions

The complaint outlines an elaborate scheme in which the defendants, operating through entities including DRI Reformers and Reformer Technologies, used front companies across multiple jurisdictions to disguise transactions and obscure the final destination of goods. US-origin or China-sourced industrial items were exported to Venezuela either directly or through intermediary countries.

To support these illicit shipments, Cairo and Fortinberry allegedly facilitated multimillion-dollar transfers between accounts located in the United States, Spain, and China. These payments, made through companies in Germany and other jurisdictions, were designed to conceal the identities of the sanctioned end-users and the true nature of the exports.

The scheme is believed to have been active from at least 2022 to the present day, suggesting a sustained violation of US export control and financial crime laws.

Potential Prison Terms of Up to 20 Years

If convicted, both men face up to 20 years in prison for sanctions and money laundering offences, and an additional 10 years for smuggling violations. The final sentencing will be determined by a federal judge, taking into account the US Sentencing Guidelines and other statutory considerations.

The investigation was jointly conducted by Homeland Security Investigations (ICE-HSI) and the Defense Criminal Investigative Service. The prosecution team includes attorneys from the US Department of Justice’s National Security Division and the Southern District of Texas, with substantial assistance from Trial Attorney Christopher Magnani.

Signal to the Sanctions Compliance Community

This case represents a stark warning to businesses and financial institutions engaged in international trade. It highlights how sanctioned entities continue to exploit global supply chains, third-country vendors, and the financial system to gain access to prohibited goods and services.

It also illustrates the US government’s commitment to enforcing sanctions and export controls through close interagency collaboration and cross-border intelligence gathering. For compliance professionals, it reinforces the need for enhanced due diligence, transaction monitoring, and rigorous scrutiny of end-user declarations.

Due Process Reminder

It is important to note that a criminal complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Read the press release here.