Brazil Launches Largest-Ever Operation Against Organized Crime, Exposing Fuel Fraud and Massive Tax Evasion

A sweeping nationwide raid in Brazil has pulled back the curtain on a multi-billion-dollar scheme involving adulterated fuel and large-scale tax evasion. President Luiz Inácio Lula da Silva took to the X platform to declare, “The population throughout the country today experienced the biggest response by the Brazilian state to organized crime in our history to date.” Justice Minister Ricardo Lewandowski added that authorities had carried out “one of the biggest operations against organized crime.”

The crackdown, codenamed Operation Carbono Oculto (“Hidden Carbon”), mobilized more than 1,400 officers across ten federal states and targeted a criminal network dominated by the Primeiro Comando da Capital (PCC). The PCC, one of Brazil’s most notorious and powerful criminal organizations, has long been linked to drug trafficking, money laundering, and violent crime. According to the Ministry of Finance, the investigation succeeded not only in dismantling operations run by lower-ranking members but also in reaching the leadership at the top of the network.

Authorities estimate that at least 7.6 billion reais—approximately 1.2 billion euros—were evaded in taxes, according to figures reported by the news portal G1 and based on official sources. Investigators pointed to the illicit importation of methanol as a central element in the operation. The chemical solvent was allegedly smuggled into Brazil through indirect routes and then mixed with fuel to increase profits.

Police further revealed that the organization relied on an elaborate financial structure to shield its assets. More than 40 investment funds and several fintech firms were allegedly used to disguise and channel illicit gains. Investigators say that around 1,000 petrol stations nationwide were directly implicated in the scheme, both in manipulating fuel and conducting suspicious financial transactions. Between 2020 and 2024, these activities are believed to have moved approximately 52 billion reais, equivalent to 8.2 billion euros.

By fLEXI tEAM