Brazil's Federal Police carried out 22 search and seizure warrants and two preventive arrest warrants on Friday (28) against an organization under investigation for buying and selling gold of illicit origin. The operation, coordinated by the Federal Police station in Cáceres, in the state of Mato Grosso, had targets in São José do Rio Preto and Mirassolândia, in São Paulo state, and in Poconé, Cuiabá, Várzea Grande and Pontes e Lacerda, in Mato Grosso, as well as Campo Grande, in Mato Grosso do Sul, according to G1 and CNN Brasil.
According to the police, investigators identified the trading of roughly 17.3 kilograms of gold and financial movements of more than R$ 5.2 million (about US$ 1 million) linked to the transactions under scrutiny. Friday's searches aim to locate and seize gold, cash, documents and electronic devices that could clarify how the group operated and identify other people involved.
How the scheme worked, according to investigators
The scheme allegedly began in Poconé, where the gold was bought from suppliers tied to garimpo, the Portuguese term for wildcat mining, which in this case police say was illegal. Payments were made by the organization's financial arm, including through third-party bank accounts. After the purchase, the ore was transported to Rio Preto, where it was received at a warehouse used for storage and then sold. CNN Brasil reported that the analysis of financial movements pointed to a structure split among suppliers, financial operators, intermediaries, transporters and buyers.
To hide and disguise the proceeds, the group allegedly used third-party accounts, shell companies and digital payment firms. Part of the money, police say, was dispersed through electronic transfers and large cash withdrawals, making it harder to trace the origin of the funds and their beneficiaries.
Those under investigation may face charges, in theory, of usurpation of raw material belonging to the federal government, money laundering and criminal association. The names of the targets were not disclosed, and all are considered suspects, with no convictions so far.
The case so far: the investigation was led by the Cáceres Federal Police station and resulted in the warrants issued by a federal court and executed on Friday. The next procedural step is the analysis of the material seized in the searches, along with custody hearings for the two suspects under preventive arrest, which under Brazilian law must take place in the coming days. The police gave no deadline for concluding the inquiry.