Brazil's Billion-Dollar Pension Fraud: Minister Resigns Amid Scandal

Brazil's social security minister resigned following a police probe into a massive fraud scheme involving pension payments. The investigation, uncovering $1.05 billion in diverted funds, led to asset seizures and arrests. The scheme misused retirees' pensions, with officials facing potential corruption and other charges.

Brazil's Social Security Minister stepped down Friday amid the unfolding investigation into a billion-dollar fraud scheme linked to the National Social Security Institute's pension payments.

President Luiz Inácio Lula da Silva accepted Carlos Lupi's resignation during a meeting in his office, appointing Wolney Queiroz, the current Social Security executive secretary, as his successor. The scheme under investigation involves the illicit diversion of over 6 billion reais.

Authorities have seized 1 billion reais in assets, targeting 11 organizations accused of unauthorized pension deductions from retirees. This operation, spanning from 2019 to 2024, could result in charges of corruption, forging documents, and money laundering against those involved.

(With inputs from agencies.)