Brazilian politician faces money laundering charges
In New York, prosecutors have brought charges on corruption and money laundering against a leading Brazilian political figure. A prominent Brazilian congressman, former Governor and and mayor of Sao Paulo state and municipality Pualo Maluf has been charged with moving millions of dollars, which was the stolen public money, through a Manhattan bank into offshore bank accounts of BVI shell companies and Channel Islands.
Also, Maluf is accused of having stolen more than SD 11.6 million out of the public account of a USD 140 million given for a local highway project in Brazil. The money was stolen by means of inflated invoices and kickbacks transferred through several shell accounts.
Through Safra National Bank in New York the money was transferred to accounts held by 4 British Virgin Islands companies purportedly controlled by Maluf. These are Durant International Corp., Sun Diamond Ltd., Kildare Finance Ltd. and Macdoel Investments Ltd. Local authorities in Jersey have frozen USD 26 million kept on Jersey’s bank accounts.
The USA and Brazil are working jointly to investigate the trail of more than USD 19 million in funds illegally exported through different money laundering efforts. The two governments are exchanging information. The USA is trying to return some of the money stolen from the Brazilian government back to Brazil.