Operation uncovers decades-long “financial carousel” funneling illicit funds through shell companies, luxury assets, and a Ribeirão Preto-based online betting platform
Brazilian law enforcement has uncovered a highly sophisticated money-laundering operation that allegedly moved nearly BR100 million through a combination of illegal gambling, shell companies, and an online betting platform. The revelation came after a broader investigation by São Paulo’s Civil Police, which executed search and seizure warrants across five cities, including the state capital, seizing electronic devices, luxury vehicles, jewelry, and significant amounts of cash.
Authorities report that the operation has been active for decades, with its roots in jogo do bicho, an illegal lottery-style game that continues to operate in many areas of Brazil. Investigators say the illicit proceeds were systematically circulated through an intricate network of companies operating in sectors such as construction, import and export, retail, agribusiness, and fish trading.
The laundering process allegedly culminated in the funds being injected into an online betting company based in Ribeirão Preto, in São Paulo’s countryside. From there, the money was reportedly funneled back to the organization’s leaders in a scheme authorities describe as a “financial carousel,” creating the appearance of legal revenue while concealing its illegal origin.
Police further highlighted that the group employed cash-based real estate transactions and asset purchases in third-party names to mask the flow of money. In one notable example, a suspect allegedly acquired a property worth approximately BR800,000 entirely in cash, while simultaneously receiving nearly BR40 million from a single individual.
Ivan Luis Constâncio, head of the investigation at São Paulo’s Division of Specialized Criminal Investigations, explained the mechanics of the operation: “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.”
Authorities are continuing to investigate the full scope of the network, including identifying additional suspects, tracking further illicit transactions, and examining the online betting company’s operations. The case underscores the ongoing challenge Brazil faces in combating complex financial crimes tied to illegal gambling and sophisticated money-laundering schemes.
