The massive operation was launched on Thursday to dismantle a timely tax evasion scheme in five states and the Federal District. The operation executed search and seizure warrants against 190 targets linked to fuel companies and the Revit Group, which owns the former Manguinhos refinery. This action, dubbed Poço de Lobato, brought together more than 600 agents and involved the Federal Revenue Office, the National Treasury Public Prosecutor’s Office, the Police, Public Ministries and Secretariats from São Paulo and other states – demonstrating that cooperation between different institutions is essential to combat criminal activities.
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Refit, led by businessman Ricardo Magro, who lives in Miami, is accused of being the largest ICMS debtor in the state of São Paulo and one of the largest in the federation. According to the São Paulo MP, the tax fraud scheme caused losses to the states and the federal government estimated at more than R$26 billion. The authorities reported that the defendants’ assets were frozen at a value of 10.2 billion Brazilian riyals.
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Investigations showed that the investigated companies repeatedly ignored tax obligations and created new fraudulent strategies to avoid paying taxes. The group used a network of collaborators to protect the real beneficiaries. To do this, they used investment funds, shell companies, and offshore companies. In addition to making traceability difficult, it has ensured that illegal activities continue and expand throughout the fuel production and distribution chain. The resources obtained were laundered through investments in other businesses, such as purchasing real estate.
The IRS discovered that a large financial institution acted as a partner for institutions providing services to Refit, with a turnover of R$72 billion in just one year. 50 funds linked to Refit were also discovered. Only 17, with a total of R$8 billion.
In August, the massive Operation Carbono Occulto, launched by federal and São Paulo authorities against Primero Comando da Capital, revealed alarming infiltration of organized crime into the official fuel market. Investigations showed that PCC controlled everything from factories to pumps. The criminals appear to have used unexpected companies and financial institutions to launder the criminal proceeds.
The complexity of the crime is daunting, as loopholes in the law, regulatory laxity and oversight failures are exploited to conduct illegal activities. The fuel sector has become one of the gangs’ favorite fields. According to a study conducted by the Institute of Compustível Legal (ICL) in partnership with Fundação Getulio Vargas, illegal activities in this sector cause R$30 billion in losses annually to the economy (R$14 billion in tax evasion alone).
Operations like Carbono Oculto and Poço de Lobato indicate a promising path at a time of public security crisis. Consistent and systematic investigations, targeting the financial wing of gangs, based on intelligence, are capable of stopping – or at least weakening – criminal groups. To obtain good results, it is necessary to combine the skills of different institutions at the three levels of government. Criminals always come up with ingenious strategies to make the work of the authorities difficult. Only by joining forces can they be captured.