Brazilian police investigate a pension fraud scheme that stole $1 billion from retirees
São Paulo (AP) – Brazilian federal police said Wednesday they are investigating a plan that transferred more than 6 billion reas ($1.05 billion) from pensions paid by the National Social Security Institute.
Authorities told reporters that the investigation targeted 11 organizations operating between 2019 and 2024. The program lists retirees as members of the association and collects a portion of their monthly pension as organizational expenses. However, retirees never joined such an association and did not authorize deductions.
As part of the investigation, the National Institute of Social Security, Alessandro Stefanutto and other directors were removed from office. The Social Security Office did not immediately respond to the Associated Press request for comment.
Federal police said they grabbed 1 billion Reas ($175.8 million) in assets on Tuesday and issued an arrest warrant for six people: three were arrested, three still in the whole person.
I don’t know who was arrested.
If the investigation finds enough evidence, the person under investigation may face charges of corruption, as well as allegations of breach of confidentiality, forgery of documents, establishment of criminal organizations and money laundering.
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