The Betrayal of Brazil

Michael Smith, Sabrina Valle, Blake Schmidt – BloombergBusiness, 05/08/2015

In mid-2013, Brazilian federal police investigator Erika Mialik Marena noticed something strange.

Alberto Youssef, suspected of running an illicit black-market bank for the rich, had paid 250,000 reais (about $125,000 at the time) for a Land Rover. The black Evoque SUV ended up as a gift for Paulo Roberto Costa, formerly a division manager at Brazil’s national oil company, Petrobras. “We were investigating a money-laundering case, and Petrobras wasn’t our target at all,” says Marena. “Paulo was just another client of his. So we started to ask, ‘Why is he getting an expensive car from a money launderer? Who is that guy?’”

Marena had spent the previous decade building cases against money launderers, and Youssef had been a perennial target. He’d been arrested at least nine times for using private jets, armored cars, clandestine pickups by bagmen, and a web of front companies to move illicit cash. But Youssef had been spared serious jail time by testifying repeatedly against other doleiros, Brazilian slang for specialists in laundering unreported cash.

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Ricardo Lewandowski: Brazil’s Rising Chief Justice

Shannon Sims – OZY, 7/25/2014

A chance encounter sometimes makes history.

Like when lawyer Ricardo Lewandowski’s mom invited his good childhood friend Laerte Demarchi to lunch in the early 1990s.

“I told her I already had plans, that I was meeting a union organizer at my dad’s restaurant,” Demarchi recalls. “She said to bring him over, too.”

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Brazil’s leading anti-corruption Justice announces he is stepping down

MercoPress, 6/30/2014

“He came to say goodbye, given that he will retire next month,” Renan Calheiros told reporters after a private meeting with the jurist. “It was a surprise and we’re very sorry, since he’s one of the best models the country has,” the senator added.

The chief justice met earlier Thursday with President Dilma Rousseff to inform her of his decision.

Barbosa, 59, was the first black jurist to head Brazil’s Supreme Court, elected by his 10 fellow justices in October 2012.

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Brazilian companies face heavy fines with new corruption law

Joe Leahy – The Financial Times, 2/18/2014

The period before Brazil’s annual carnival in late February is normally short of news. But this month, the nation’s media has been buzzing with the case of a man who fled the country after being convicted in Brazil’s biggest corruption case.

Henrique Pizzolato, the former marketing director of Banco do Brasil, the state-controlled bank, was allegedly found living in his nephew’s apartment in Maranello, Italy, by Italian police and is facing possible extradition.

He disappeared from Brazil last year after being sentenced to more than 12 years jail for his role in the Mensalão case, in which some of the nation’s most senior politicians were found guilty of vote-buying in Congress using public money.

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Brazil police trial airs judiciary’s flaws

John Lyons – Wall Street Journal, 12/18/2013

A murder trial here that brought attention to Brazilian police brutality is now shining light on something else: A court system that can take years to produce verdicts, sometimes leaving both defendants and accusers feeling bereft of justice.

On Monday, a judge declared a mistrial in the prosecution of four São Paulo state policemen who are charged with the shooting a suspect in their custody, Paulo Nascimento, as he pleaded for his life in November 2012.

Soon after the trial began, a three-way shouting match broke out between the defense attorney, the lead prosecutor and the judge over a procedural question. It descended into a crossfire of accusations of judicial favoritism and an unqualified expert witness. A new trial won’t start before late 2014, officials said.

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Brazil is entranced by a tale of love, taxes, and bribery

Simon Romero – The New York Times, 11/26/2013

There were the boxes of Cuban cigars, which cost about $500 each at a shop in Vila Nova Conceição, one of the most exclusive districts of São Paulo, and the $2,260 bottles of Vega Sicilia Único, a legendary Spanish red. Throw in a Porsche Cayenne, speedboat jaunts to tropical islands and all-night soirees with high-end escorts, and what do you get?

The unlikely lifestyle of a Brazilian tax inspector.

In one of the most salacious corruption scandals to captivate Brazil in years, the municipal government of São Paulo, the nation’s largest city, is reeling from revelations of a scheme in which investigators claim that a group of tax inspectors allowed construction companies to evade more than $200 million in taxes in exchange for bribes.

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