São Paulo state prosecutors have accused 16 people of taking part in a criminal organization that diverted methanol to adulterate fuels sold in Greater São Paulo, Folha de S.Paulo reported on Wednesday (26). G1 also covered the case. Among those named is businessman Roberto Augusto Leme da Silva, known as Beto Louco, described by prosecutors as one of the main financiers of the scheme. The complaint was filed by the Guarulhos unit of Gaeco, the special organized crime task force of the São Paulo prosecutor's office.

According to Folha, the accused face counts of criminal organization and money laundering. Prosecutors also cite evidence of fuel adulteration, tax crimes, consumer crimes, fraud, document forgery and environmental crimes. The complaint says Beto Louco used the companies Aster, Copape and Duvale to move millions of reais tied to the activities under investigation. The group allegedly operated from 2017 to 2025.

Investigators say the organization relied on a network of chemical companies, trucking firms, fuel distributors, payment institutions and investment funds to divert methanol, an input with controlled sale and use in Brazil, and to conceal the origin of the money made through the fraud. The complaint describes a standing structure set up to simulate purchases of the product:

"The evidence gathered allows us to state that there is a permanent structure to forge the acquisition of methanol for the supposed production of biodiesel, with the product never shipped to its formal destination on paper, and the effective delivery of the product to gas stations, precisely to adulterate fuels and increase profits," prosecutors wrote, according to Folha.

The case is an offshoot of Operation Carbono Oculto (Hidden Carbon), which investigates the infiltration of the PCC, Brazil's largest criminal gang, in the fuel sector. On May 28, Gaeco launched the operation's second phase, called Fluxo Oculto, with 59 search and seizure warrants in five states targeting a money laundering scheme run through fintechs and the adulteration of fuel with naphtha, according to CNN Brasil.

Case timeline

• 2017 to 2025: period in which the organization allegedly operated, according to the complaint;
• May 2023: Brazil's Federal Highway Police found methanol with one of those involved, the episode that started the investigation;
• May 28, 2026: Gaeco carries out the second phase of Operation Carbono Oculto, aimed at fintechs and investment funds;
• May 2026: the state prosecutor general, Paulo Sérgio de Oliveira e Costa, rejects a plea bargain proposal submitted by Beto Louco; according to CNN Brasil, the refusal was driven by omissions in the offer;
• August 26, 2026: prosecutors accuse 16 people.

Folha contacted Beto Louco's defense on WhatsApp on Wednesday afternoon but had received no reply by the time its story was published.

A judge will now review the complaint and decide whether to accept the accusations and open a criminal case. Only if it is accepted will the accused formally become defendants; all are presumed innocent unless a final conviction is handed down. No date has been announced for the decision.