Lula praises “largest operation against organized crime in history”
Brazilian President Luiz Inácio Lula da Silva on Thursday (Aug. 28) talked about the launch of a series of police operations investigating the activities of criminal groups in the fuel production chain laundering money from drug trafficking rings.
“Today, people across the country witnessed the Brazilian state’s strongest response to organized crime in our history to date. In coordinated actions involving the Federal Police, the Federal Revenue Service, and state prosecutors, three simultaneous crackdowns were launched in the financial and fuel sectors involving 10 states,” the president said in a post on social media.
He praised the integrated approach, which began with the creation of the Organized Crime Combat Unit within the Ministry of Justice. “It allowed us to monitor the entire chain and target the financial core sustaining these practices,” the president noted.
“Our commitment is to protect citizens and consumers, cut off the flow of illicit money, recover resources for the public coffers, and ensure a fair and transparent fuel market with quality and fair competition. We will continue to act in a coordinated and serious manner to provide security for the people and stability for the economy,” he added.
Ongoing operations
According to the Federal Police, efforts in at least two separate crackdowns aim to dismantle “money laundering schemes with significant financial impact.” Investigations uncovered a sophisticated scheme that used investment funds to conceal assets of illicit origin, with evidence of links to criminal factions.
As part of Operation Quasar, 12 search-and-seizure warrants are being executed in the state of São Paulo.
Federal court authorities have authorized the seizure of investment funds from those under investigation, in addition to freezing assets and amounts up to approximately BRL 1.2 billion, which corresponds to the tax assessments made thus far. The lifting of bank and tax secrecy for individuals and legal entities under investigation has also been ordered.
Operation Tank
Federal agents have also been executing warrants since early this morning against members of one of the “largest money laundering networks ever identified in the state of Paraná.” According to the police, the criminal organization investigated in Operation Tank had been operating since 2019 and may have laundered at least BRL 600 million and handled over BRL 23 billion through a network of hundreds of companies – including gas stations, distributors, holding companies, collection agencies, and payment institutions authorized by the Central Bank.
The criminals used various devices to conceal the origin of the funds. The investigators believe According they made use of fractional deposits adding up to more than BRL 594 million. This was done through “front men, cross transactions, transfers without fiscal backing, accounting fraud, and the simulated acquisition of goods and services.”
The investigation also found fraud in the sale of fuel, including “gasoline adulteration and the so-called ‘low pump,’ in which the volume supplied is less than what is indicated. At least 46 gas stations in Curitiba were involved.”
Agents executed 14 arrest warrants and 42 search and seizure warrants in the states of Paraná, São Paulo, and Rio de Janeiro. “Assets and funds belonging to 41 individuals and 255 legal entities were frozen, totaling more than BRL 1 billion.”
