A scheme that would scandalize even the Old Lady of Taubaté.

The Federal Police and the Public Prosecutor's Office are mapping the actions of front men who allegedly acted as a conduit for bribes paid by companies contracted without bidding to the mayor of Taubaté, Roberto Peixoto (PMDB), and his wife, Luciana Flores - both were arrested on temporary warrants by order of Judge Mairan Maia, of the Federal Regional Court of the 3rd Region (TRF3).

A report by the Federal Police cites José Eduardo Touso as a front man, "one of the main suspects." He allegedly issued false invoices for services rendered to the company Home Care Medical, which supplies medicines. The Peixoto government spent R$ 7,39 million on the purchase of medicines on an "emergency basis."

The investigation reveals that initially Peixoto received payments directly. "However, with the start of the investigations, the front man Touso was included in the fraud scheme, who then began to simulate the provision of services to the company Home Care."

According to the investigation, Touso issued invoices to Home Care and, after receiving payment for this alleged service, passed the money on to Peixoto. "Regarding José Eduardo Touso, it was also possible to ascertain that he owned several companies registered in his name, one of which was located at a place that turned out to be his residential address, and that he also had a criminal record for committing various crimes."

Prosecutors working to defend public assets in Taubaté argue in a civil action for administrative misconduct that "the contract signed between the municipality and Home Care served to pay bribes to the mayor and his wife, who, with the illegally obtained resources, acquired assets incompatible with their means."