The police of Rio de Janeiro revealed the scheme of money laundering with the participation of civil servants, assigns budgetary funds intended for feeding prisoners in a Brazilian prison. Part of the resulting fraudulent transactions funds transferred in bitcoins. In the end, the criminals were rated 22.4 million dollars.
After the disclosure scheme was issued on 28 search warrants and arrested seven people. Among those arrested included the former head of the prison administration of Rio de Janeiro Cesar Rubens Monteiro Carvalho (Cesar Rubens Monteiro) and the former head of one of the police departments Marcelo Martins (Marcelo Martins).
As told by the superintendent of the Tax administration of Rio de Janeiro Luis Enrique Casimiro (Luíz Henrique Casemiro), cryptocurrency such a scheme was used for the first time. He said:
«Our office drew attention to this case, as here was first used bitcoin. Cash transfers were carried out with further buy bitcoin».
Presumably, at the head of the criminal scheme was the former Governor of Rio de Janeiro Sergio Cabral (Sérgio Cabral), who last year was sentenced to 14 years in prison on charges of money laundering and corruption.
The money laundering scheme
The money laundering scheme began in 2001, long before some of its members began to invest the stolen funds in cryptocurrency. At that time, the company Induspan under the leadership of entrepreneur Filipe Paiva (Paiva Filipe) was hired as a supplier of food for the state prisons of Brazil. In 2010, the contract with the company was terminated as it became clear that Induspan supplied food at an inflated price.
After that Paiva has created a non-profit organization called the Primus Initiative, which began to supply food to prisons in Rio de Janeiro at prices Induspan.
According to the Prosecutor, or the price supplied by Primus Initiative bread for 13 years has increased almost 10 times. Significantly increased the volume of supplied products, despite the fact that the number of prisoners has remained the same.
It is reported that in the period from 2010 to 2015 with the help of this scheme, criminals have earned 22.4 million dollars. No less than 13.7 million was laundered through a fake travel and exchange company.