Brazilian authorities on Thursday (28) launched a massive operation to dismantle a wide-ranging fraud and money laundering network in the fuel sector, allegedly infiltrated by members of the Primeiro Comando da Capital (PCC), one of the country’s most powerful criminal organizations.
The Federal Revenue Service said the scheme encompassed nearly all links of the fuel chain controlled by organized crime — from importation, production, distribution, and retail sales to final stages of asset concealment and protection through fintechs and investment funds.
Search and seizure warrants were executed against roughly 350 targets — individuals and companies — across eight states: São Paulo, Espírito Santo, Paraná, Mato Grosso, Mato Grosso do Sul, Goiás, Rio de Janeiro, and Santa Catarina.
The operation mobilized more than 350 federal tax agents, supported by the São Paulo state public prosecutor’s office (MPSP) through its special organized crime unit (Gaeco), the federal prosecutor’s office (MPF), the Federal Police, state civil and military police, São Paulo’s treasury department (Sefaz/SP), the National Petroleum Agency (ANP), and the São Paulo state attorney general’s office (PGE/SP).
The National Treasury Attorney General’s Office (PGFN) also filed civil lawsuits to block more than R$1 billion in assets, including real estate and vehicles, to secure unpaid tax credits. Authorities estimate the scheme enabled more than R$7.6 billion in unpaid federal, state, and municipal taxes.
Investigations indicate that a sophisticated scheme laundered money coming from crime and obtained profits in the fuel production chain through the use of several operating companies to hide the criminal origin of the money. Tax evasion and product adulteration increased the profits.
Above photo - Imported ethanol was used to add volume to fuels
Full story Organized crime infiltrates Brazilian fuel market | Law | valorinternational
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