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U.S. modifies sanctions to allow Maduro legal defense payments

Treasury Department reverses position after federal judge emphasizes constitutional right to counsel

U.S. modifies sanctions to allow Maduro legal defense payments
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The U.S. Treasury Department faces ongoing pressure to permit the Venezuelan government to pay legal fees for Nicolás Maduro and his wife, Cilia Flores, following judicial intervention. The issue centers on the Office of Foreign Assets Control's decision to block such payments after initially approving them in January, citing an "administrative error."

U.S. District Judge Alvin Hellerstein has questioned the government's rationale for blocking funds. In recent court proceedings where Maduro's defense challenged the sanctions, Hellerstein expressed skepticism about whether sanctions enforcement should deny a criminal defendant access to counsel. The judge emphasized that the Sixth Amendment right to counsel is "paramount" and stated he would reconsider the decision if he determines the Trump administration is arbitrarily preventing Maduro from paying for counsel. Hellerstein indicated he could compel the Treasury Department to allow Venezuelan government funds for legal fees, though the timing of any such ruling remains unclear.

Judicial intervention forces reconsideration

OFAC had granted a specific license for legal fee payments on January 9, then revoked it three hours later for Maduro, citing an "administrative error." Defense attorney Barry Pollack argued this action violated Maduro's constitutional right to choose his own lawyer, noting that Venezuelan law and custom dictate the government covers legal expenses for its officials facing prosecution.

Judge Hellerstein's skepticism centered on whether sanctions enforcement could effectively deny a criminal defendant access to counsel by blocking all available payment sources. The judge urged prosecutors to revisit the Treasury Department's position, suggesting he could intervene if the government continued to arbitrarily block such payments. As of March 2026, the dispute over whether Venezuela can pay Maduro's legal fees remains unresolved, with his lawyers continuing to argue that the U.S. is violating his constitutional rights by blocking these funds.

The constitutional challenge has created complications for the prosecution. Maduro and Flores face narco-terrorism charges in Manhattan federal court stemming from a 2020 indictment alleging conspiracy with the FARC to flood the U.S. with cocaine. Both have pleaded not guilty. The judge stated he would not dismiss the case for now, but indicated he could revisit the decision depending on future government actions regarding the funding dispute.

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Trial timeline remains uncertain

The drug trafficking case against Maduro and Flores continues, though a trial is still months, potentially years, away. The complexity of the case and the need for robust legal representation were factors in Judge Hellerstein's consideration of the funding dispute. With the constitutional question still pending, the case proceeds while the funding issue remains unresolved.

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