The United States freed a close ally of Venezuelan President Nicolás Maduro in exchange for the release of 10 Americans imprisoned in the South American country and the return of a fugitive defence contractor known as “Fat Leonard”.

Leonard Glenn Francis, the Malaysian owner of a ship-servicing company, is at the centre of one of the largest bribery scandals in Pentagon history.

Mr Francis was arrested in a San Diego hotel nearly a decade ago as part of a federal sting operation. Investigators say he bilked the US military out of more than $35 million by buying off dozens of top-ranking Navy officers with booze, sex, lavish parties and other gifts.

Three weeks before he faced sentencing in September 2022, Mr Francis made an escape as stunning and brazen as the case itself as he snipped off his ankle monitor and disappeared. He was arrested by Venezuelan police attempting to board a flight from Caracas and has been in custody since.

The prisoner exchange represents the Biden administration’s boldest move yet to improve relations with the major oil-producing nation and extract concessions from the self-proclaimed socialist leader. 

Mr Maduro celebrated the return of ally Alex Saab as a “triumph for truth” over what he claimed was a US-led campaign of lies, threats and torture against someone he considers a Venezuelan diplomat illegally arrested on a US warrant.

“President Biden, we won’t be anyone’s colony,” a defiant Mr Maduro said with Mr Saab at his side for a hero’s welcome at the presidential palace.

Mr Saab hugged his wife and two young children as he descended the staircase of a private jet at the Simon Bolivar International Airport. Also present to welcome him was Venezuela’s first lady, Cilia Flores.

The release of Mr Saab, long regarded by Washington as a bagman for Mr Maduro, is a significant concession to the Venezuelan leader. 

Former President Donald Trump’s administration held out Mr Saab as a trophy, spending millions of dollars pursuing the Colombian-born businessman, at one point even deploying a Navy warship to the coast of West Africa following his arrest in Cape Verde to ward off a possible escape.

US officials said Mr Biden’s decision to grant him clemency was difficult but essential in order to bring home jailed Americans, a core administrative objective that in recent years has resulted in the release of criminals once seen as untradeable.

“These individuals have lost far too much precious time with their loved ones, and their families have suffered every day in their absence. I am grateful that their ordeal is finally over,” Mr Biden said in a statement.

Republicans, echoing the sentiment of many in the US-backed opposition, said Mr Saab’s release would only embolden Mr Maduro to continue down an authoritarian path.

“Disgraceful decision,” Republican Senator Marco Rubio of Florida, vice chair of the Senate Intelligence Committee, posted on Twitter.

The agreement also requires Mr Maduro’s government to release 21 Venezuelans. Among the Americans released are two former Green Berets, Luke Denman and Airan Berry, who were involved in an attempt to oust Mr Maduro in 2019.