Brazil's Conafer scandal: fraud, money laundering and political blackmail uncovered

Police investigations have linked the Confederation of Rural Farmers and Family Entrepreneurs (Conafer) to a large fraud scheme involving the diversion of more than R$708 million from social security benefits. Former secretary Iris Ferreira Rodrigues received over R$4.1 million through shell companies controlled by Conafer's accountant and a presidential aide, money that was used to pay a luxury car, settle debts with loan sharks and acquire high‑value property under the direction of Conafer president Carlos Roberto Ferreira Lopes.

Separately, investigators say Lopes tried to pressure federal deputy Eros Biondini by exploiting payments made to the deputy’s daughter, state legislator Chiara Biondini. The payments, described as a “fictitious salary,” amounted to R$10 thousand a month and were allegedly intended as a bargaining chip to deter the deputy from supporting a parliamentary inquiry into the INSS fraud. The Operation Sem Desconto probe has indicted 48 people, including Lopes and his lawyer, while the Biondinis deny wrongdoing, asserting that the final police report found “no irregular act.”