A 31-year-old municipal employee has been arrested in Santo Antônio do Pinhal, São Paulo state, on suspicion of embezzling approximately BR6m from the city treasury, with investigators alleging that part of the funds were spent on gambling, including online betting platforms.
According to the Civil Police, the employee allegedly transferred public funds into multiple private accounts before the money was routed back to her.
“She dispersed the amounts across several accounts, and that money ended up returning to her. That’s how we were able to retrace the path and identify her,” said the lead investigator, Luís Geraldo Ferreira.
He added that in testimony she claimed to have used a significant portion of the money on gambling through digital platforms, though the investigation remains ongoing to determine whether others were involved.
Police have so far recovered approximately BR800,000. The suspect has been placed in preventive detention and indicted for misappropriation of funds, carrying a potential sentence of 2 to 12 years in prison.
The municipality confirmed that the employee worked in the Treasury Department and earned around BR2,000 per month. The alleged diversion represents roughly 10% of the city’s annual revenue.
City officials stated that internal audits began after irregularities were flagged and that the case was immediately referred to law enforcement and prosecutors.
"It's a small town, everyone knows each other. The shock was tremendous because there was no suspicion. Regarding the betting, it was a shock to everyone," stated the city’s Secretary of Legal Affairs, Pedro Nunes.
In addition to the criminal investigation, civil and administrative proceedings have been opened. The municipality is seeking reimbursement of the allegedly diverted funds and has indicated the employee may be dismissed.
Brazil recently approved the creation of a Federal University of Sport, with part of fixed-odds betting revenue eligible to support the institution
