Brazilian Federal Police dismantle school lunch fraud ring in Pernambuco.
Operation Mudslide uncovers money laundering and embezzlement of food funds in Pernambuco municipalities; more than 50 people may be involved; fraud exceeds R$ 1,8 million.
The Federal Police (PF) today questioned six people suspected of involvement in a money laundering and embezzlement scheme in Pernambuco. They were arrested during Operation "Sea of Mud" and have already been indicted, but will remain free pending trial. Among those arrested are two bank managers, a businessman, a politician, a public employee, and a student.
According to the Federal Police, they allegedly laundered money involving food companies that supplied school meals to several municipalities in the state, in addition to diverting funds related to the salaries of ghost employees. The scheme involved opening fraudulent bank accounts, in the names of non-existent people, for depositing and withdrawing funds obtained through corruption and embezzlement.
It is estimated that around R$ 1,8 million was "laundered" in this process during 2007. The identification of the group was possible through investigations initiated that same year, which pointed to a large scheme of corruption and embezzlement of public funds involving several politicians. The investigations focused on the negotiation and payment of bribes to guarantee support for projects in a kind of "monthly allowance" scheme.
The six people arrested today could be indicted for the crimes of forming a criminal organization, using false documents, fraudulent administration of a financial institution, embezzlement, active and passive corruption, and money laundering. In the coming days, approximately 50 other people investigated by the Federal Police in the operation will be summoned for questioning.