Judge Moro orders the arrest of contractor Dario Galvão.
Businessman Dario Galvão, owner of Galvão Engenharia, was arrested this Friday in São Paulo; the arrest warrant was issued by Judge Sergio Moro, from Paraná; this week, Galvão filed for judicial reorganization; Lava Jato investigators point to the contractor as the "effective mastermind" of bribes at Petrobras; in this new phase of the operation, Guilherme Esteves, identified as an operator of the scheme, was also arrested.
247 - Businessman Dario Galvão, owner of Galvão Engenharia, was arrested this Friday in São Paulo, by order of Judge Sergio Moro, from Paraná, in another phase of Operation Lava Jato. This week, Galvão filed for bankruptcy protection, citing financial difficulties. In addition to him, Guilherme Esteves, identified as an operator in the scheme, was also arrested.
Lava Jato investigators identified Dario Galvão as the "effective mastermind" behind the payment of bribes at Petrobras. "There is evidence of the crimes being committed over prolonged periods, extending at least from 2008 to 2014," stated Judge Sérgio Moro, according to a report by Fausto Macedo, Julia Affonso, and Ricardo Brandt.
Below is a news article from Agência Brasil:
The information comes from the press office of the Federal Police. The detainees will be taken to the Federal Police Headquarters in Curitiba, where they will be held at the disposal of the Federal Court.
Galvão Engenharia is one of 16 construction companies targeted in the investigation into bribes, corruption, and favoritism at Petrobras.
Last Wednesday (25), Galvão filed for judicial reorganization in Rio de Janeiro, alleging financial difficulties due to default, including by Petrobrás. One of the contractor's executives, Erton Medeiros, has been in prison since November.
In recent days, two contractors have made revelations to the Lava Jato task force regarding the involvement of other businessmen. One of them is Gerson Almada, from Engevix Engenharia. The other is contractor Ricardo Pessoa, from UTC Engenharia.
Counsel - Galvão Engenharia and Galvão Participações filed for judicial reorganization with the Rio de Janeiro State Court on Wednesday (March 25). Targets of Operation Lava Jato, the companies indicate that Galvão Engenharia's financial condition was aggravated by the default of some of its main clients, including Petrobras. "The state-owned company did not honor payments for additional services performed, requested and certified by it," the company said in a statement. The problem is reflected in Galvão Participações.
In the "Lava Jato" operation, the director of Galvão Engenharia, Erton Medeiros Fonseca, was arrested. Furthermore, the company was prohibited from contracting with Petrobras by an administrative decision of the oil company itself.
The Galvão Group states that it “has always been available to the authorities to collaborate with the investigations” and that it “has never participated in any type of alleged 'cartel' of companies to the detriment of its clients' interests.”
Controversial search
One of the major controversies surrounding the "Lava Jato" investigation concerns Galvão Engenharia and Galvão Participações. The Federal Police extended a warrant directed at Galvão Engenharia to the group's holding company, whose headquarters are located 17 floors above the company.
Galvão Participações operates on the 19th floor of a building in São Paulo and claimed that its assets were seized without judicial authorization, as the Federal Police used a search warrant intended for Galvão Engenharia, located on the 2nd floor. The judge responsible for the case, Sergio Moro, stated that the Federal Police's actions were correct and pointed out that he had authorized entry onto more than one floor. However, in December 2014, the Supreme Federal Court declared evidence collected from a company different from the one named in the search and seizure warrant, even if located in the same building, to be null and void.