Brazilian Federal Prosecutor's Office indicts 31 people for fraud totaling R$ 21 million in Rouanet Law funds.
The Federal Public Prosecutor's Office (MPF) has indicted 31 people accused of participating in a scheme that embezzled R$ 21 million through the Rouanet Law; those accused of participating in the frauds uncovered by Operation Boca Livre, launched in June 2016 by the Federal Police (PF), will face charges of criminal organization, fraud against the Union, and falsification of documents.
Daniel Mello, reporter for Agência Brasil - The Brazilian Federal Public Prosecutor's Office (MPF) has indicted 31 people accused of participating in a scheme that embezzled R$ 21 million through the Rouanet Law. Those accused of participating in the frauds uncovered by Operation Boca Livre, launched in June 2016 by the Federal Police (PF), will face charges of criminal organization, fraud against the Union, and falsification of documents. The 3rd Federal Court in São Paulo will review the indictment and decide whether to proceed with the case.
According to investigations involving the Federal Public Prosecutor's Office, the Federal Police, and the Comptroller General of the Union, the Bellini Cultural Group developed fictitious projects and presented illicit counterparts to the cultural funding mechanism through tax waivers. Created in 1991, the Rouanet Law grants tax incentives for cultural projects and actions. Through the law, individuals and legal entities can allocate part of their income tax to cultural projects.
According to the indictment, the defendants used various means, such as false invoices, to simulate the execution or inflate the accounting of cultural projects. There was also the submission of duplicate projects, using the same tactic to justify the accounting of two proposals sent to the Ministry of Culture. Furthermore, according to the prosecution, shows and performances financed with public funds end up becoming closed, institutional events.
The funds, which according to the proposals were supposed to be used for orchestra performances and exhibitions in inland cities or peripheral areas, even went so far as to pay for the wedding of one of the partners in the accused group, according to the investigations.
In addition to Bellini's directors and employees, representatives of the donor companies are accused of participating in the fraud. These companies include a car manufacturer, a law firm, a pharmacy chain, an appliance store chain, and consulting and auditing firms.
In addition to the analysis of the seized documentation, the evidence against the accused is based on approximately four months of wiretapped phone conversations.