TLDR Brazil’s Federal Revenue Service launched Operation Conto da Sorte on June 23, targeting illegal betting The scheme involved 37 companies and an estimated BRL50 billion ($9.7 billion) in financial movement 14 search and seizure warrants were executed across Pernambuco, Ceará, and São Paulo Up to BRL145 million in assets were frozen by court order The fraud originated from irregular company accreditation by a municipality in Rio Grande do Norte Brazil Raids Illegal Betting Network Moving $9.7 Billion
Brazil’s Federal Revenue Service launched Operation Conto da Sorte on June 23, targeting a large illegal betting network across multiple states.
The operation was carried out alongside state Public Prosecutors’ offices and revealed a scheme involving 37 companies with an estimated financial movement of BRL50 billion, or around $9.7 billion.
Finance Minister Dario Durigan confirmed the details and stated the government has a zero-tolerance policy toward illegal betting.
Authorities executed 14 search and seizure warrants in the states of Pernambuco, Ceará, and São Paulo. The focus was on gathering documents, digital media, and verifying the real structure of the companies involved.
A court also ordered the freezing of up to BRL145 million in assets. Those funds may be used to compensate for damages caused by the illegal activities.
Shell Companies and Front Men at the Center of the Scheme
Investigators found that the group created dozens of companies involved in gambling, betting, and payment processing.
Many of these companies were transferred to third parties who lacked the financial capacity to run them. Some of those individuals were even recipients of emergency government aid, while the scheme’s actual leaders kept control of the money.
Several companies did not physically exist at all. They were used only to move money through the banking system.
Investigators identified money laundering, tax evasion, purchase