Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

Brazil probes alleged money laundering on sales to Venezuela's PDVSA

Published 09/11/2017, 06:12 PM
Updated 09/11/2017, 06:20 PM
© Reuters.  Brazil probes alleged money laundering on sales to Venezuela's PDVSA

By Lisandra Paraguassu

RIO DE JANEIRO (Reuters) - Brazilian police on Monday launched an operation involving possible money laundering by the agricultural arm of Venezuela's state-run oil company PDVSA through imports of agricultural equipment from Brazil, authorities said.

Under the scheme, which has been under investigation for three years, PDVSA overpaid two companies, one Venezuelan and one Brazilian, for agricultural machinery to the tune of 200 million reais ($64.46 million) between 2010 and 2014, officials said.

According to police, Venezuela's Tracto America, a trading company, bought agricultural equipment from Brazil's America Trading which was sold to PDVSA at inflated prices.

The extra money was distributed to front companies, disguised as payments to consulting firms. Some landed in accounts in Brazil, but most ended up abroad in Panama, the United States and Switzerland, among other countries.

Arib Jiobanny Garcia Vargas, the owner of Tracto America, was arrested in Madrid with Interpol's help and is also under investigation in Venezuela for foreign exchange crimes and smuggling.

The operation also includes six search and seizure warrants in Brazil's Rio Grande do Sul and Sao Paulo states, and six people were detained for questioning.

Brazilian authorities said they are planning to launch a new stage of the investigation to unravel further details in collaboration with Venezuelan prosecutors.

($1 = 3.1026 reais)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.