Miami-Dade Circuit Judge Beatrice A. Butchko. Photo: J. Albert Diaz/ALM

A Miami-Dade judge entered sanctions and a multimillion-dollar default judgment against a Venezuelan businessman.

Miami-Dade Circuit Judge Beatrice Butchko ruled against Franco A. Lauricella Ramirez in an order striking his pleadings.

Butchko, presiding over a lawsuit brought against Lauricella and his brother Miguel in the Eleventh Circuit's complex business division, determined the investor had deliberately disobeyed discovery orders and delivered "self-serving testimony as to why he supposedly could not comply" with the court's requests.

The judge's order directed the defendant to pay nearly $2.96 million to Zuma Bank, a Caribbean financial institution based in the Commonwealth of Dominica.

The bank filed suit against the Lauricella siblings, alleging fraud, and seek an undetermined sum of attorney fees and pre- and post-judgment interest. It filed the case against Lauricella and his brother in September 2017, accusing the defendants of owing millions of dollars in unpaid loans. It also claimed they participated in a fraudulent scheme for the benefit of Venezuelan businesses.

According to Zuma's October 2018 amended complaint, the Lauricellas secured loans from the bank ostensibly for their business Comercializadora Frainjo C.A., a Venezuelan company purportedly specializing in the storage and exporting of materials out of the South American country. But the suit alleges the defendants committed fraud because the company had been insolvent at the time. The complaint contends the brothers instead used the loans to finance lavish Miami lifestyles and to invest in multimillion-dollar South Florida real estate for their own gain.

Read the amended complaint:

The lawsuit also claimed the the Lauricellas transferred the Zuma money to Transporte Urbano Fermin C.A., a company that the Venezuelan government alleges defrauding the country's treasury of $35 billion. It sought loan repayment and overdraft fees from the defendants.

Butchko's order granted a motion by the plaintiff to strike Lauricella's pleadings and enter a default judgment for noncompliance.

Lauricella had been asked to provide documents and correspondence concerning Comercializadora Frainjo C.A. and various transactions made using money purportedly originating with Zuma's loans. The judge wrote the defendant demonstrated "willful and deliberate disregard for this court's authority," and rejected his explanations for not complying with discovery orders.

"Defendant had been provided ample opportunity to provide the records requested, and failed in every aspect without providing a credible legal excuse," Butcko found. "The discovery delays caused by Franco have created significant problems with the judicial administration of this case. This case has been pending since September 2017, and the court is still adjudicating compliance matters pertaining to the first series of discovery requests."

The judge added the case "ranks among the most egregious examples of discovery violations that the court has confronted."

Miami-Dade lawyers Alexander F. Fox and Simon Ferro Jr. represented the Lauricellas. A joint statement from the attorneys signaled their intent to appeal the ruling.

"We have a great deal of respect for Judge Butchko, but we disagree with her decision here, and will be seeking appellate review," the emailed statement said.

Zuma's legal counsel, Coral Gables-based solo practitioner Carlos Sardi, did not respond to requests for comment Wednesday.

Related stories:

2 South Florida Home Purchases Linked to Venezuelan Bribery Scheme

Florida Appeals Court Greenlights Arbitration in Dispute Over Colombian Craft Beer