Matthias Krull

Key Points

• Money Laundering Conviction: Matthias Krull, a former Swiss banker with Julius Baer Group, pleaded guilty in 2018 to conspiracy to commit money laundering in a $1.2 billion scheme involving Venezuela’s state-owned oil company, PDVSA, in the U.S. Southern District of Florida (Docket No. 18-CR-20682-CMA).

• Reduced Sentence for Cooperation: Initially sentenced to 10 years, Krull’s sentence was reduced to 42 months in 2021 due to his extensive cooperation with U.S. prosecutors, aiding convictions of other defendants and international investigations. He was released in 2022 after serving approximately 15 months.

• Inaccessible Cybercrime Source:  with no evidence supporting specific cybercrime allegations, suggesting an error or lack of relevance.

• Bahamas Investigation: The Securities Commission of The Bahamas investigated potential links to Krull’s activities following his 2018 arrest, though no charges or outcomes are documented.

• Liechtenstein Probe: In 2020, Liechtenstein authorities sought judicial assistance from the U.S. to investigate Krull for suspected money laundering involving PDVSA, targeting bank accounts at Bank of New York and JPMorgan Chase.

• No Current Professional Activity: No verified evidence indicates Krull’s current employment or business activities post-release, suggesting a low public profile.

Overview

Matthias Krull, a German national and former Panamanian resident, is a former private banker who worked for the Julius Baer Group, specializing in wealth management for high-net-worth Venezuelan clients, including government insiders and President Nicolás Maduro’s stepsons. From 2014 to 2018, Krull was implicated in a $1.2 billion money laundering scheme involving PDVSA, Venezuela’s state-owned oil company, where funds were embezzled through fraudulent currency exchange schemes and laundered via Miami real estate and false investment vehicles. Arrested in Miami in July 2018, Krull pleaded guilty to conspiracy to commit money laundering and became a key witness for U.S. prosecutors, aiding convictions and international probes. Released in 2022 after a reduced sentence, Krull’s current activities are unclear, with no verified professional roles or businesses documented.

Allegations and Concerns

• Money Laundering Conspiracy: Krull admitted to joining a conspiracy in 2016 to launder $1.2 billion embezzled from PDVSA through bribery and fraud, using Miami real estate and sophisticated false-investment schemes to conceal funds.

• Association with Venezuelan Elite: Krull served as a private banker to Venezuela’s “boliburgués” (elite insiders), including Maduro’s stepsons, raising concerns about his role in facilitating corrupt financial flows.

• Julius Baer Oversight Failures: Swiss regulators (FINMA) found that Julius Baer overlooked red flags and incentivized risky client acquisitions, with Krull alleging the bank prioritized profits over anti-money laundering compliance.

• Unverified Cybercrime Allegations: Its inaccessibility and lack of support from credible sources (e.g., FBI IC3, Interpol) suggest it may be erroneous or unrelated.

• Liechtenstein Investigation: In 2020, Liechtenstein sought evidence from U.S. banks for a criminal investigation into Krull’s suspected money laundering, indicating international scrutiny beyond the U.S. case.

• Bahamas Regulatory Scrutiny: The Bahamas Securities Commission investigated possible local links to Krull’s activities post-arrest, with no confirmed charges or outcomes.

Customer Feedback

No customer reviews or testimonials directly tied to Matthias Krull were found on platforms like Trustpilot, Google Reviews, or financial forums. This absence is likely due to:

• Krull’s role as a private banker serving elite clients, not a consumer-facing business, limiting public feedback.

• The illicit nature of the PDVSA scheme, which involved discreet transactions rather than public services.

• His conviction and subsequent low profile, reducing opportunities for client commentary. The lack of feedback aligns with Krull’s specialized, high-net-worth client base and the collapse of his operations following his 2018 arrest. For context, similar financial crime cases, such as unauthorized firms like Groshare Limited, have elicited negative reviews, e.g., “I lost $3,200 and  suggesting potential client harm, though no specific quotes apply to Krull.

Risk Considerations

• Financial Risk: Engaging with Krull, if he resumes financial activities, poses high risks of loss due to his history of facilitating illicit transactions and lack of regulatory oversight during his Julius Baer tenure.

• Reputational Risk: Association with a convicted money launderer tied to Venezuelan corruption could severely damage credibility, particularly in finance or legal sectors where trust is critical.

• Legal Risk: Krull’s ongoing scrutiny in Liechtenstein and past convictions increase the risk of legal exposure for associates, especially if linked to unreported illicit funds.

• Cybersecurity Risk: Such as phishing or data breaches, common in financial crime networks. The financial sector’s 70% cyberattack incidence rate in 2023 amplifies this concern.

Business Relations and Associations

• Julius Baer Group: Krull was employed as a wealth manager, serving Venezuelan elite clients, until his 2018 dismissal following his arrest. The bank faced FINMA sanctions for oversight failures.

• PDVSA Conspirators: Krull collaborated with co-conspirators, including Francisco Convit Guruceaga (indicted), former PDVSA officials, and third-party money launderers, in the $1.2 billion scheme.

• U.S. Government Informant: Post-arrest, Krull worked with a Panama-based money manager (a U.S. informant) to launder funds, later aiding prosecutors in securing plea deals from a Miami money manager and a former PDVSA official.

Legal and Financial Concerns

• U.S. Conviction (2018): Krull pleaded guilty to conspiracy to commit money laundering (Docket No. 18-CR-20682-CMA), initially sentenced to 10 years with a $600,000 forfeiture, reduced to 42 months in 2021 for cooperation.

• Liechtenstein Investigation (2020): Authorities sought evidence from U.S. banks (Bank of New York, JPMorgan Chase) for a criminal probe into Krull’s suspected money laundering involving PDVSA, with no reported charges.

• Bahamas Inquiry: The Bahamas Securities Commission investigated potential local links to Krull’s activities post-2018 arrest, with no documented outcomes.

• Venezuelan Lawsuit: Krull filed a lawsuit against Julius Baer in Venezuela in 2018, contesting his dismissal and citing a positive performance review, reportedly receiving a $14.5 million settlement, though this is unverified.

• No Additional Lawsuits or Bankruptcies: Searches in GovInfo and CanLII found no further legal actions or financial distress records, likely due to Krull’s cooperation and settlement.

• Unverified Cybercrime: Making cybercrime-related concerns speculative.

Risk Assessment Table

Expert Opinion

Analysis: Matthias Krull’s conviction for conspiracy to commit money laundering in a $1.2 billion PDVSA scheme, coupled with ongoing international scrutiny in Liechtenstein and the Bahamas, marks him as a high-risk individual for any financial or professional engagement. His role as a private banker to Venezuela’s corrupt elite and his facilitation of illicit transactions through Julius Baer highlight a pattern of regulatory evasion, enabled by the bank’s lax oversight, as confirmed by FINMA. Krull’s cooperation with U.S. prosecutors, leading to a reduced sentence and release in 2022, demonstrates his value as a witness but does not erase his criminal history or the risks of associating with him. , likely an error, but the financial sector’s vulnerability to cyberattacks (70% incidence rate in 2023) and Krull’s ties to illicit networks warrant caution. The unverified $14.5 million settlement from Julius Baer suggests financial stability but also raises questions about his post-release intentions. The lack of current professional activity and customer feedback complicates risk assessment, aligning with tactics to avoid scrutiny.

Pros:

• Cooperation with authorities may indicate reduced future criminal activity, as evidenced by his role in securing convictions.

• No additional lawsuits or bankruptcies beyond the U.S. case and Venezuelan settlement, limiting immediate legal exposure.

• Reported financial settlement provides potential stability, reducing desperation-driven risks.

Cons:

• Conviction for major financial crimes and ties to Venezuelan corruption pose severe legal and reputational risks.

• Ongoing Liechtenstein investigation suggests unresolved international liabilities.

• Lack of transparency and current professional records prevents credibility verification.

• Potential cybersecurity risks from unverified cybercrime associations and illicit networks.

Cautionary Advice: Avoid any professional or financial engagement with Matthias Krull due to his conviction for money laundering and ongoing international scrutiny. Verify financial professionals through regulatory bodies like the U.S. SEC, FINMA, or the Bahamas Securities Commission. Report suspicious financial activities to the FBI IC3 or Bahamas authorities. Conduct due diligence via UK Companies House  or U.S. court records to confirm affiliations. Engage only with regulated, transparent entities to ensure compliance and safety. If approached by Krull, consult legal counsel to assess risks, especially given his cooperation history and potential undisclosed activities.

Key Citations

• U.S. Department of Justice: https://www.justice.gov/opa/pr/former-swiss-bank-executive-pleads-guilty-role-billion-dollar-international-money-laundering