Brazil Federal Police investigate São Roque pension fund fraud

The Brazilian Federal Police have launched Operação Entressafras to investigate alleged financial irregularities at São Roque Prev, the social security institute for municipal employees in São Roque, São Paulo. The investigation focuses on approximately R$ 100 million in irregular investments made between 2022 and 2024, including R$ 80 million in financial letters and R$ 20 million in a real estate investment fund.

Authorities claim these investment decisions lacked adequate technical justification and failed to follow administrative processes or portfolio diversification standards. The estimated loss to the pension fund is R$ 121 million, an amount that has been blocked against the suspects. The investigation also highlights previous investments exceeding R$ 90 million in Banco Master.

On Tuesday, police executed nine search and seizure warrants in São Roque and Pernambuco. Suspects may face charges including fraudulent management, money laundering, embezzlement, and crimes against public administration.