Brazil police arrest international gang involved in pyramid scheme

The Brazilian Federal Police on Wednesday (Oct 19) served six preventive arrest warrants and 41 search and seizure warrants, during the so-called Operation La Casa de Papel, launched to dismantle a criminal organization responsible for implementing a transnational financial pyramid scheme. The organization has also committed crimes against the national financial system, such as currency evasion, ideological falsehood, money laundering, usurpation of public assets, and larceny.

The pyramid scheme has captured financial resources from about 1.3 million people in more than 80 countries. The damage to investors is estimated at BRL 4.1 billion. Operations reportedly began in 2019, the police informed.

Investigations began in the city of Dourados, in the state of Mato Grosso do Sul, in August 2021. The police caught two of the investigated men red-handed when they were traveling toward the border with Paraguay, with an armed escort. Emeralds valued at $ 100 thousand dollars, whose origin was illicit, were found with the criminals.

The police explained the goal of the operation is to completely demobilize this criminal organization, hindering it from continuing to practice fraud with the preventive detention of its leaders and suspension of their activities. According to the police, it is very important to spread the word on social media about the risks of this type of business, as well as to seek reimbursement for the resources stolen from harmed parties.