Fuel Fraud Frenzy: Ex-Governor Claudio Castro Under Investigation

Brazil's federal police executed search warrants targeting former Rio de Janeiro Governor Claudio Castro. The investigation involves accusations of fraudulent management, money laundering, and tax evasion, particularly in the context of a privately owned refinery. Castro resigned in March and is barred from office for eight years.

Brazil's federal police took action on Friday by executing search warrants involving former Rio de Janeiro Governor Claudio Castro, according to two sources. Despite the operation, Castro's lawyer clarified no searches were conducted at his personal residence. However, another property in Petropolis was searched, although not linked to Castro for months.

The federal police are delving into claims of fraudulent and reckless management, alongside offenses like money laundering, tax evasion, and market manipulation, centering around fuel marketing. This ongoing probe builds on an earlier case involving a privately owned refinery, where irregular environmental licenses were allegedly issued, bypassing technical guidance. The investigation also scrutinizes suspected money laundering linked to this scheme.

Previously, in May, the former governor was implicated in another case regarding tax evasion, leading to the suspension of operations at the Refit refinery. Despite accusations, Castro's defense asserts that actions under his administration adhered to legal protocols, and the state recaptured nearly 1 billion real in debts. Castro resigned in March and faces an eight-year ban from holding office due to electoral abuses in 2022.