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Swiss UBS and American AIG Involved in Brazilian Tax Evasion Scheme

Part of the cash seized by Brazilian police in operation Kasper II After an investigation that lasted one year and a half, the Brazilian federal police unleashed a concerted raid this Tuesday, November 6, using 280 federal agents in three states to break a criminal scheme concocted with the help of Swiss financial institutions to launder Brazilian money and send it overseas.

The plan helped individuals and companies from Brazil to funnel their funds into untraceable bank accounts in Switzerland through a method known as dólar-cabo (cable dollar). 

Operation Kaspar II carried out 21 warrants of arrest and 44 search and seizure orders in the states of São Paulo, Bahia and Amazonas.

Among the 19 people arrested there were partners and executives of big Brazilian companies as well as three officials from foreign banks doing business in Brazil. Among those detained were Swiss banks UBS and Credit Suisse officials as well as an executive of US-based insurance giant AIG.

According to a note from Brazil's Federal Police, the plot was "a criminal scheme whereby banks opened numbered and coded accounts into which Brazilian clients sent money without declaring its origin using the intermediation of doleiros (illegal dollar dealers)." 

Brazilian authorities say that some of those implicated in the plan used doleiros to pay overseas suppliers through a stratagem in which the imported products were under invoiced.

The temporary arrest orders carried out by the Brazilian agents are valid for five days renewable for another five, but those caught by authorities might get up to 40 years in prison if they are condemned for all the crimes they are being charged with.

They are being accused of fraudulent management, tax evasion and embezzlement, money laundering, gang formation and operating a financial institution without authorization from Brazil's Central Bank. The police intend to ask for the preventive prison of some
of those caught.

The Federal police estimate that the money sent to banks in Switzerland and other European countries together with the under invoicing of merchandise bought overseas by Brazilians represents 1 billion Brazilian reais (US$ 570 million) in tax evasion during the last 18 months, the time the investigation lasted.

In the last six months alone, says Ricardo Andrade Saadi, the police chief who coordinated the Kaspar II operation, the scheme was siphoning between 6 million reais (US$ 3.4 million) and 7 million reais (US$ 4 million) out of the country, every month. According to Saadi, the scheme was done in collusion with high officials of the foreign banks involved.

The operation seized 6 million reais and about US$ 600,000 in cash. Bank accounts containing about 2 million reais (US$ 1.1 million) have been blocked by the Brazilian authorities. Kaspar II, was the third police operation focusing on illegal money remittance abroad. The other two were called Operação Suí­ça (Swiss Operation) and Kaspar I.

Brazilian authorities say they cannot name those being probed because the whole legal process is a confidential in camera proceeding. According to unofficial sources, however, Ornare, a luxury furniture factory, Le Postiche, a leather goods company and Gold, a key manufacturer, are among the companies being investigated by the police.


  • Show Comments (22)

  • João da Silva

    The Guest
    Bon Voyage. Have a safe trip. Merry X-Mas and a happy 2008.

  • The Guest

    I do work offshore, however on ships not rigs. Thus, no internet access. I am on my way to the middle east and wont be back until about mid january.

  • João da Silva

    The Guest
    Thanks for the info on the websites. Will read, while you are working hard 🙁
    You work off shore? If so, how many miles from Miami? Don’t they have Internet connection there? If necessary, we will request Forrest to drop by the rig and let you use his Sat phone to communicate to us.
    The 4th part of RicardoÀ‚´s article is accessible from here. Worth reading.
    Will you be back before X-Mas?

    All the best

  • forrest Brown

    thies are in all soils in ever river in brasil
    so dont just point the finger at the estrangeiros

    and if you want too have a real bad day test the soil around any airport
    and city in brasil

  • tired of them

    Correlation of Pcdd/F and Pcb Concentrations in Soil Samples from the Swiss Soil Monitoring Network (Nabo) to Specific Parameters of the Observation Sites
    Concentrations of polychlorinated dibenzo-p-dioxins and dibenzofurans (PCDD/F) and polychlorinated biphenyls (PCB) were determined in 23 soil samples collected.
    PROLAND Website
    Severe soil contamination with metals and organic pollutants occurred at Agroscope FAL Reckenholz, Swiss Federal Research Station for Agroecology

    Fig. 1 À¢€“ Brown soil near Chironico (Ticino) one of the 95 test sites. The heavy metal concentration at this location is shown in Fig. 3Photo: M. Walser (WSL)

    Fig. 2 – Locations of the 95 tested forest soils. Click on the map to enlarge.
    In order to gain an insight into heavy metal contamination in Swiss forest soils scientists analysed the concentration of chromium, nickel, copper, zinc and lead in 95 selected sites (Fig. 2) at various soil depths. The results show that the Swiss regulation guide levels on soil pollution and critical concentrations for micro organisms are often exceeded. The risk of ground water pollution varies depending on the region.

  • ch.c.

    and to Jony….out of jail….once more !
    Please just refer to the many rankings of Brazil…..in the many comparative rankings, not issued by me, but by International Agencies !
    You may as well read the hundreds of articles (not comments on the forums) published…..not by me, but frequently by brazilians themselves !

    Ohhhh and you may as well read the thousands and thousands of articles published ALL over the world for the INJUSTICE of Brazilian society in whatever way you like ! It rarely rarely is….pleasant, wether you like or not !

    Sorry for you, but YOU have the society YOU have built ! And you have the ones….you voted for !
    Therefore continue your sufferings just as you like them. You certainly dont deserve more than what you built…by definition !

    We all know that you dont have slaves as per Alencar, despite Lula said just how ashamed it is…in Brazil !

    One of the two lie, by definition.

    But if you dont have slaves, how can you publish so many times, that you freed so many thousands slaves from farms ?????
    You had as per Lula, no vote buying, but your senate PARDONED those they were supposed to expulse !
    I know, I know, in Brazil you pardon innocents, not those guilty !!!!! Because the Brazilians being guilty have IMPUNITY !!!!!
    And those guilty deserving jail can ONLY be foreigners !!!!!

    This is a Brazilian tradition, a daily lifestyle. The Brazilian INjustice and unfairness !!!!

    If you are only half idiot, please clarify….just once !!!!!!

    The world knows your export prowess…totalling less than US 1000.- per capita/year !
    The world knows your ethanol incredible performance, in using millions of manual workers, instead of mechanical harvesters……AVAILABLE ALREADY FOR SEVERAL DECADES……but elsewhere !

    Is reality racism ? Thus YOU ARE the racists against your own society, NOT ME !!!!

    Enjoy your filthy way of thinkings !

  • The Guest

    Ch.c is alive and well.

    Here is the website for best newspaper that has news of the Federation. http://sunstkitts.com/paper/?asknw=view&sun=425635067511072007
    If it does not work try http://www.sunstkitts.com
    Sun Antigua may come up. If so, on the left side of the page center, click on Sun St. Kitts/Nevis and it will take you to Sun St. Kitts.

    “You are talking about Ricardo AmaralÀ‚´s article? “
    Yes, I will see how much of the comments I can read before I leave for work on Friday. I am having a difficult time gaining access to part 4.

  • João da Silva

    [quote]Ohhhh and also your many churches, one of them OWNING one of the largest TV chanel….in Brazil !!!! [/quote]

    A sharp observation on your part. By coincidence, today I was with someone who was talking about this.

  • João da Silva

    The Guest
    [quote]I hope he shows up soon. I am interested in his opinion on this one.

    Now Ch.c is obliging all of us with his comments 😉

  • ch.c.

    Intresting to note that…….
    ….you care more for a few millions US$ here or there than the well over 100 billion BRL smuggled out of Brazil from 1998 to 2002 from brazilian banks…mostly to the USA !!!!!

    Even worse :
    In December 2004 your senate voted NOT to open an official investigation on that subject.
    Guess why !
    90 Bazilians politicians were named in the accusation report !!!!!!!!
    You may as well scroll the news….on this site from May to December 2004, and find out if this comes “only from my imagination”.

    I note with interest, therefore, that as long as foreign firms are involved, it becomes a national pass time to put them in jail, but when Brazilians firms and especially Brazilians politicians are involved, NOTHING EVER HAPPENS….whatever the amount of corruption, tax evasion, or money smuggling are involved !

    And the best example of all is : Your Central Bank President MEIRELES !!!!!!!!
    The second best being your ” honest” politicians having undisclosed expensive condos….in Miami and NY !!!!!
    Of course, on top of their bank accounts….there, to pay for the mortgages !
    Ohhhh and also your many churches, one of them OWNING one of the largest TV chanel….in Brazil !!!!

    Short memory ?????

    Laugh….laugh…laugh !

  • João da Silva

    The Guest
    Please do guide me to some newspaper web sites of your country.

    I bet old Forrest has been there too.

  • João da Silva

    The Guest
    [quote]By the way, I just finish reading the 4 part series of articles and the most of the comments. Very interesting series.

    You are talking about Ricardo AmaralÀ‚´s article? It is good, except that he wouldnt ask for the Chinese money 😉

    I hope you read the comments of Forrest as well as mine. Please do read my comments of mine in Part 1.Then the comment of the Chinese gentleman in Part 4.

  • The Guest

    “Ch.c is not in hiding. He is as slippery as an eel. “
    I hope he shows up soon. I am interested in his opinion on this one.

    “I guess you have this kind of fish in your country too.”
    We do have this kind of fish in my country.

    “I was having severe problems with my PC too. Then I decided to fix myself and it seems to be working well.”
    I am happy you were able to fix yours. Mine went to the garbage dump. The utility companies do not take responsibility for the problems that they cause.

    By the way, I just finish reading the 4 part series of articles and the most of the comments. Very interesting series.

  • forrest allen brown

    nothing said about the ones trying to hide the money
    lets here a list of brasilian and there compines that tried this .
    it would not have happned if some one did not ask if it could be done .

    take all the money give it to the poor indians as they will have to buy back there lands from LULA
    and his higest court .

    put the ones in jail for a long time to show no one is above the law not even the ones that make it or pay to have it made

  • The Guest

    Federation features in New York Times
    Tuesday November 06 2007

    St. Kitts was featured twice in the travel section of last Sundayˢ۪s New York Times.
    The country was part of the travel section cover story entitled, À¢€œAffordable CaribbeanÀ¢€Â and is one of only 13 Caribbean islands included.
    The section on St. Kitts/Nevis alone consists of several paragraphs and contains sections on where to stay, where to eat, free beaches, what to do, where to party and what to buy.
    It begins by noting that the island is not known for budget travel, but that it does offer À¢€œsome low-cost gems.À¢€Â
    The piece continues to encourage visitors to À¢€œwander out of downtown BasseterreÀ¢€Â and find that À¢€œthe islands still have palm-lined beaches, small coastal villages surrounded by sugar cane fields and a dormant volcano that disappears into the clouds.À¢€Â
    Among the sites, attractions, operators, restaurants and properties mentioned in the story are: Timothy Beach Resort, Bird Rock Beach Hotel, Rock Lobster, StoneWalls, Cockleshell Bay Beach, Lion Rock bar, Pro Divers, Ziggyˢ۪s Beach Bar, Mr. X Shiggidy Shack, Caribelle Batik and the islandˢ۪s two casinos.
    A slideshow also accompanies the story online, with images of the Southeast Peninsula, Cockleshell Beach, Bird Rock Beach Hotel, Caribelle Batik, downtown Basseterre, Fancy Loaf Bakery and Brimstone Hill.
    The photos were all taken by author Conrad Mulcahy, who travelled to the island in complete anonymity in accordance with The New York Timesˢ۪ strict policy governing media visits.
    St. Kitts is also featured for a second time in the Practical Traveller column in a story about new non-stop flights to the Caribbean.
    A full paragraph is dedicated to St. Kitts/Nevis, including the non-stop flight from JFK on American Airlines beginning 18 Nov., 2007 and the non-stop from Atlanta on Delta beginning 16 Feb., 2008.

  • The Guest

    Christophe Harbour to be handed over on Sunday
    Friday November 02 2007

    The much talked about Christophe Harbour on St. Kittsˢ۪ southeast peninsula will be presented to the twin-island Federation.
    Kiawah Development Partners, Auberge Resorts, Mandarin Oriental and J.B. Turbidy have invited scores of government officials, members of the business community and nationals of St. Kitts/Nevis to the presentation, which will take place Sunday at The Royal Ball Room of the St. Kitts Marriott Resort and the Royal Beach Casino.
    Developers and experts involved in the multi-million dollar project will give government officials, businessmen and resident an overview, discuss hotel’s employment issues and provide pertinent information on the marina village, destination and environmental impact and the expected luxury resort experience.
    St. Kitts/Nevis Prime Minister and Minister of Tourism Dr. Denzil L. Douglas is to expected give brief remarks.
    Prime Minister Douglas and Minister of State for Tourism Richard Skerritt were in New York two weeks ago for the formal launching of the Christophe Harbour development, which has received international coverage in all corners of the world.
    The multi-million dollar project which has been described as a powerful partnership of award-winning hoteliers, architects, engineers, real estate developers, golf experts and environmentalists, will, when completed, result in the creation of an incomparable seaside resort that will revolutionise luxury travel in the Caribbean.
    The project will sit on six spectacular beaches. Its natural harbour, sheltered by green hills and high bluffs, will provide the ideal setting for mega-yachts as centerpieces of a seaside village of restaurants, shops, boutiques, two five-star hotels managed by Mandarin Oriental Hotel Group and Auberge Resorts and oceanfront homes. Atop the green cliffs will be a Tom Fazio championship golf course and clubhouse plus a collection of luxurious villas and private homesites.
    Initially, two luxury hotels are planned for Christophe Harbour, accommodating visitors and yachting enthusiasts who will dock at the Marina or call it home. The first hotel will be a five-star boutique property under the management of Auberge Resorts, respected for its collection of exceptional hotels, resorts, spas and clubs.
    The second five-star hotel will be managed by Mandarin Oriental Hotel Group, the award-winning owner and operator of some of the worldˢ۪s most prestigious hotels and resorts.
    Each property will be intimate, elegant and individually designed to take advantage of the splendid natural surroundings of these singular hotels.

  • The Guest

    Here are three articles about my country.

    Priest praises policy of good governance
    Sunday November 04 2007
    A senior church official has commended St. Kitts/Nevis Prime Minister Dr. Denzil L. Douglas for involving residents of the twin-island Federation in the decision-making process and for a mechanism to investigate public complaints against government departments.
    Delivering the invocation at the recent National Consultation on the Economy, Rector of the St. Peterˢ۪s Anglican Church, Fr. Isaiah Phillip issued a challenge to local businesses and professional organisations to follow the lead of government and for the investigation of complaints by the general public.
    Rev. Phillip commended Prime Minister Douglas, his Cabinet colleagues and Labour Party administration À¢€œfor fleshing out the national challenge of PaulÀ¢€™s assertion to the Christians at Corinth.
    He also told the 300 participants that PM. DouglasÀ¢€™ annual consultation on the economy, the À¢€œFace to Face,À¢€Â the regular meet the people sessions, the monthly press conferences and post cabinet statements, À¢€œrepresents a whole inclusive approach to governance.À¢€Â
    In issuing a challenge for the process that the prime minister and his administration À¢€œhave been institutionalising to be expanded across the nation, the St. Kitts-born Anglican Priest, who has served in Dominica, Antigua and Birmingham, England, noted that as St. Kitts/Nevis looks towards full operation of the Caribbean Single Market and Economy (CSME), encouraged À¢€œour businesses and professional organisations (lawyers and doctors association, builders and building services professionals) in the Federation to follow the lead of government and develop systems to constantly and systematically get the public involved and get our ideas for the improvement of the quality of services that you offer to us.À¢€Â
    The Anglican priest used the opportunity to appeal to Prime Minister Douglas to enhance the democratic process by not only having the various stakeholders share in the important processes of government, such as economic policy development and implementation as well as legislation improvement, but take the process even further.
    Phillip called for the creation and strengthening of the framework for the intentional and co-ordinated investigation of complaints from the general populace about issues of political bias and other forms of discrimination that they perceive they have encountered in dealing with government departments.

  • João da Silva

    The Guest
    In all fairness to him, he was always giving us the stats about how much money was sent from here to U.S. and Swiss banks.

    Ch.c is not in hiding. He is as slippery as an eel. I guess you have this kind of fish in your country too. Ch.c must have learnt his trade in Lake Geneve 😉

    BTW, I was having severe problems with my PC too. Then I decided to fix myself and it seems to be working well. Guess what? irresponsibility on the part of the telephone company 🙁

  • The Guest

    JoÀƒ£o, He is hiding. Too much corruption pointing straight to the Swiss. His spreadsheets cannot fix them.

  • João da Silva

    Has Ch.c been jailed again? Or was he the one who tipped our Feds,by e-mailing them his “Spreadsheet”?

  • jony

    Letˢ۪s not even mention the daily racist comments one can find on the regular basis here at the Brazzil Magazine site about all Brazilians going on now, for years!
    It seams to me that thereˢ۪s a criminal SWISS activity behind every bad news from Brazil.
    When are we going to take them serious if we want the world to take us serious? When are going to take matters to the next level?
    Where the hell are our Ambassador, our Consuls and Diplomats? The Federal Police did their part where the hell is the ABIN, the SNI and CIE when we need them? We Brazilians pay for their salaries with our hard earned tax money, its time to demand some performance around here!

  • jakob

    Policia Federal
    It seems that Policia Federal is one of few things that function well in Brazil… Parabens to PFs. Perhaps the work done by PF will cause the politicos to steal less.

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