Brazilian police have uncovered what investigators describe as a highly structured money-laundering operation that allegedly moved close to BR100m through illegal gambling, shell companies and an online betting platform.
The scheme came to light following a different operation launched by São Paulo’s Civil Police, with search and seizure warrants executed across five cities, including the state capital. Authorities seized electronic devices, jewelry, cash and luxury vehicles during the operation.
According to investigators, the group operated for decades, initially generating illicit revenue through jogo do bicho, an illegal lottery-style game still active in many parts of Brazil.
From there, the money was allegedly circulated through a web of companies spanning construction, import and export, retail, agribusiness and fish trading, before being channeled into an online betting company based in Ribeirão Preto, in the countryside of São Paulo.
Police say the final stage of the scheme involved the funds being transferred back to the organization’s leadership, creating what investigators labeled a “financial carousel” designed to obscure the origin of the money.
The investigation also points to the use of cash real estate transactions and asset purchases in the names of third parties.
One of the suspects allegedly bought a property valued at approximately BR800,000 entirely in cash, while receiving nearly BR40m from a single individual.
As explained by Ivan Luis Constâncio, head of the investigation at the branch of the Division of Specialized Criminal Investigations, “the scheme works like a financial carousel: illicit resources pass through companies such as construction firms and developers.”
“The capital is then injected into the online betting company through concentrated transfers, before returning to the organization’s leadership with the appearance of legality.”
Brazilian authorities have recently stepped up enforcement actions targeting financial crime linked to gambling and lottery-related operations
