Police seeking arrests in Banco do Brasil debt collection scam
Thursday 09/May/2019 - 04:34 PM
Brazilian police launched an operation on Thursday to arrest 17 people suspected of involvement in a scheme to launder money and siphon off funds at state-controlled Banco do Brasil SA، authorities said، according to Reuters.
The investigation targeted employees of Banco do Brasil and businessmen linked to firms set up to collect debt in arrears on behalf of the bank، according to a statement describing the actions carried out by civil police in Brasília.
The group may have siphoned off 26 million reais ($6.5 million)، authorities said.
Banco do Brasil did not immediately comment on the matter.
Also authorities said 28 search warrants were executed in the states of Goiás، São Paulo، Minas Gerais، Pernambuco، Paraná، Santa Catarina، Mato Grosso and Rio de Janeiro as well as in the federal capital Brasília.
Police said they found evidence that employees and former employees of the bank were fraudulently sending money to the debt collection firms as part of the scheme.
Subsequently، the companies involved returned part of the money to the bank as compensation for participating in the fraud، police said. Edited by: Ahmad El-Assasy