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Montevideo, May 23rd 2018 - 15:01 UTC

Massive raid in Brazil, Uruguay and Paraguay after money laundering ring suspected of moving US$ 1.6bn

Friday, May 4th 2018 - 08:09 UTC
Full article 3 comments
Federal prosecutors in Rio said that arrest warrants were issued for 53 people, mostly black-market money changers, including six in Uruguay and Paraguay. Federal prosecutors in Rio said that arrest warrants were issued for 53 people, mostly black-market money changers, including six in Uruguay and Paraguay.
“This sting opens the door on an unknown universe,” said prosecutor Rodrigo Timoteo. “We have pulled back the first layer, but there are many more.” “This sting opens the door on an unknown universe,” said prosecutor Rodrigo Timoteo. “We have pulled back the first layer, but there are many more.”

Brazilian investigators conducted one of their largest operations against graft ever on Thursday, targeting a money laundering ring linked to powerful politicians and businessmen that moved some US$1.6 billion through offshore accounts in 52 countries.

Federal prosecutors in Rio de Janeiro said that arrest warrants were issued for 53 people, nearly all of them black-market money changers, including six in neighboring Uruguay and Paraguay. The information on illicit transactions for major companies and politicians those suspects have is certain to be “explosive,” one prosecutor said.

Authorities noted at a news conference that the “Car Wash” corruption investigation that began in 2014 and has morphed into one of the world’s largest anti-graft efforts began with the arrest of a single money changer.

“This sting opens the door on an unknown universe,” said prosecutor Rodrigo Timoteo. “We have pulled back the first layer, but there are many more.”

Investigators were able to conduct Thursday’s raids and arrests because of plea-bargain testimony of two money changers, Vinicius Claret and Claudio Barbosa, who moved illegal money for former Rio de Janeiro governor Sergio Cabral, who is serving over 100 years on several corruption convictions. He was accused of stealing over US$ 100 million from the cash strapped coffers of Rio state.

Claret and Barbosa were arrested in Uruguay on March 2017 and later extradited to Brazil. They are considered as the “cream” of the money exchangers and revealed the existence of a system called “Bank Drop” which includes some 3.000 offshore companies in 52 countries with a turnover of US$ 1.6 billion.

Two of the Brazilian money changers arrested on Thursday in Uruguay, identified by prosecutors as Francisco Munoz and Raul Pegazzano, had allegedly carried out illegal operations in the past for the world’s largest meatpacker, JBS SA.

The company said in a statement that its executives who reached plea deals with prosecutors had already given detailed information about the company’s connection with the two men.

Prosecutors said they have asked a court to order the confiscation of 7.5 billion reais (US$ 2.13 billion) in cash and goods from those linked to the laundering ring, half of that to pay to the government the amount of money illegally moved over the past two decades and half to pay fines.

Categories: Politics, Brazil, Uruguay.

Top Comments

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  • :o))

    Three “MASTERS” [of Money-Laudering] are involved and still, the laundered figure is $1.6 billion - so SMALL?

    Please calculate [or investigate] AGAIN!

    May 04th, 2018 - 10:24 am 0
  • Jack Bauer

    It's just the tip of the iceberg.

    May 06th, 2018 - 05:28 pm 0
  • :o))

    @JB:

    Quite true!

    A roughly calculated figure [estimated] can be in Trillions of US$s; during the 30 or so years and still, all of them claim to be the Third-World Countries.
    REF:
    https://i1.wp.com/www.sidrolandiaagora.com.br/wp-content/uploads/2017/10/vereadores.jpg

    May 07th, 2018 - 10:31 am 0
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