Real estate transactions and financial transactions carried out in Piracicaba (SP) are investigated by the Public Ministry of São Paulo (MP-SP) as part of the corruption, tax fraud and money laundering scheme at the São Paulo Finance Department involving the Tax on Circulation of Goods and Services (ICMS).
According to the MP, the scheme consisted of paying bribes to public agents so that there would be legal release, for large companies, of accumulated ICMS credits at the São Paulo State Finance Department (understand below).
Police in Piracicaba during the MP's mega-operation into a corruption and money laundering scheme at the SP Finance Department — Photo: 10º Baep
The scheme came to light during the operation carried out this Thursday (3), which resulted in the arrest of André Weiss, former executive general director of the São Paulo Tax Administration, and lawyer João André Buttini de Moraes.
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The operation took place in the capital and interior of São Paulo, Greater São Paulo and Mato Grosso do Sul.
Office in Piracicaba
Weiss was arrested in Piracicaba, in a condominium in the São Dimas neighborhood, this Thursday morning. In addition, there were searches and seizures in other parts of the city.
This is because, according to the MP-SP, investigations point to a financial relationship between a Piracicaba tax office, in the Jardim Europa neighborhood, and João André Buttini de Moraes' bank. According to the prosecutor's office, there were millionaire transfers between these companies.
Andre Weiss (left) and lawyer João Buttini — Photo: Reproduction
Real estate operations and family connections
The MP's investigation also includes real estate transactions made in Piracicaba by Weiss and his partner.
The MP-SP cited purchases and sales of properties in Piracicaba, Jundiaí (SP), Rio das Pedras (SP) and São Pedro (SP) with declared values that do not match the valuation of the properties.
For the prosecution, this difference in values may indicate an attempt to launder illegal money from the scheme within the state government. In one of the cases, a property valued at R$141 thousand was declared by Weiss for R$620 thousand.
Furthermore, investigators identified financial transfers from Weiss to his brother-in-law, a lawyer who lives and has an office in Piracicaba.
The MP-SP is investigating whether the bank accounts and shares in companies linked to the brother-in-law were used to enter into the financial system values that would have come from the alleged scheme at the Finance Department.
Understand the scheme
The investigation, based on plea bargains, recordings, breaches of bank secrecy and data from the Financial Activities Control Council (Coaf), revealed that the group was divided into two groups:
Private initiative: sought large taxpayer companies to negotiate facilities for releasing ICMS credits.
Public agents: they received part of the money collected as bribes to find a way to speed up the legal release of ICMS refund amounts to the state body.
The Public Ministry points out that the bribe charged reached 10% of the value of the ICMS credit to be paid to companies. To measure the size of the scheme, one of those investigated confessed to having received more than R$13.6 million in bribes in the last four years.
Corruption and money laundering
The MP investigates possible crimes of criminal organization, active and passive corruption and money laundering related to procedures for the reimbursement of ICMS withheld through tax substitution (ICMS-ST) and the use of accumulated credits.
ICMS-ST is a regime in which a company collects in advance the tax due for the other stages of the circulation chain of a good. In certain situations, the taxpayer may request a refund of overpaid amounts.
According to the Public Ministry, the scheme would have transformed this legitimate tax mechanism into an underground market. Negotiations would involve not only taxpayers' credits, but also the administrative acts necessary to recognize and release them.
What the Treasury Department says
In a statement, the State Finance Department stated that it has been cooperating with investigations since an operation carried out last year on the same subject. According to the ministry, the actions resulted in the dismissal of five people involved, one dismissal and the removal of 17 public servants without payment of salaries.
The secretariat also highlighted that the companies involved in the scheme are being held responsible. This accountability process has already generated the collection of more than R$3 billion in tax credits, fines and interest.
