Brazilian Deputy Sóstenes Cavalcante Under Federal Probe for Misuse of Parliamentary Funds

Brazil's Federal Police have launched a new phase of Operation Rent a Car, also called Operation Galho Fraco II, to investigate Deputy Sóstenes Cavalcante, leader of the PL in the Chamber of Deputies. The probe focuses on R$ 468,700 in cash found in December 2025 hidden in a wardrobe at the deputy’s residence and on whether parliamentary quota funds were diverted through a vehicle‑rental firm, Harue Locação de Veículos, and falsified invoices.

Investigators linked the cash to a network of companies – EJUS Empreendimentos Imobiliários, Foco Engenharia e Incorporações, and others – controlled by two lawyer brothers. Bank‑label analysis showed connections to withdrawals amounting to up to R$ 15 million. The operation also targets a property‑sale deed that records a R$ 500 k payment in cash for a Minas Gerais house, which was registered on 30 December, days after the cash seizure, raising suspicions of document fraud.

Deputy Cavalcante denies any irregularities, maintaining the money came from the sale of the property and that he is being persecuted. The Federal Police’s actions, authorized by Supreme Court minister Flávio Dino, include searches and seizures in Brasília, Minas Gerais, Goiás and the Federal District, focusing on the deputy’s allies rather than the deputy himself in this phase.