Brazilian entrepreneur Geraldo Rufino accused of R$ 6.8 million fraud

Entrepreneur Geraldo Rufino, touted as a possible vice‑presidential running mate for former Minas Gerais governor Romeu Zema, is under judicial investigation for an alleged fraud scheme that diverted at least R$ 6.8 million from creditors of his company JR Diesel.

On 13 April, Judge Gilvana Mastrandéa de Souza of the 7th Civil Court in Osasco rejected Rufino’s and his wife’s request to resume management of JR Diesel, which has been in judicial recovery since 2016. The decision cited a “pattern of conduct” involving asset‑mixing, undisclosed transfers, and the use of shell companies and “laranjas” to hide assets. Investigators also identified cash payments, possible “caixa‑2” (illegal campaign financing) activities, and a R$ 380 000 credit line granted to the couple’s children, who were not employees.

Police have opened an inquiry to determine whether the conduct violates Brazil’s bankruptcy law. Rufino, who rose from collecting cans in São Paulo’s Sapé favela to owning the largest legal scrap‑dismantling network in Latin America, presents himself on social media as the “catador de sonhos” (dream collector). The fraud allegations threaten both his business interests and his prospective political role.