Federal Police arrests former Petrobras director for money embezzlement

The Federal Police (“PF”) confirmed on Thursday (Mar. 20) the arrest of former director of Petrobras Paulo Roberto Costa, in Rio de Janeiro. He is suspected of being involved in a criminal organization that embezzled money in six states as well as the Federal District. Transactions are estimated at over $4.3 billion.

According to the PF, Costa was temporarily arrested because he was destroying the evidences of his involvement with an illegal currency dealer. The former director is to be taken on Thursday to Curitiba, where investigations are expected to take place.

On Monday (17), the Federal Police executed 24 arrest orders and 81 search and seizure warrants in 17 cities. Around 400 police officers took part in the operation. The scheme included four groups headed by currency dealers who profited from currency exchange transactions in the black market. They are also involved in other crimes, such as drug trafficking, exploitation and illegal trade of diamonds, and corruption of public officials.

Transactions effected by these groups combined are estimated at $4.3 billion in the last three years, according to data from the Council for the Control of Financial Activities, a department in the Finance Ministry. The chief method for money embezzlement was the use of a network of laundromats and gas stations. Fake companies were also created in Brazil and abroad in order to simulate import and export contracts. One of the members of the criminal organization alone has sent over $250 million overseas between 2009 and 2013.

Translated by Fabrício Ferreira