Federal Police uncovers multi‑million‑real election‑funding scheme in Maranhão, Brazil

Brazil's Federal Police launched Operation Fundo Oculto to investigate two criminal organisations that diverted public funds to finance municipal election campaigns in the state of Maranhão. The scheme used companies that held municipal contracts to funnel nearly R$ 10 million into accounts linked to the candidates, with assistance from a bank employee in São Luís. Money was withdrawn from the companies’ accounts and transferred to “dummy” accounts to launder the proceeds. Fifteen candidates were identified as beneficiaries, and the money was dispersed among municipal employees. The investigation resulted in 25 search and seizure warrants, the seizure of assets worth about R$ 4 million, and the removal of a public employee from office. Prosecutors may charge those involved with electoral fraud, money laundering, organized crime, active and passive corruption, and public‑fund embezzlement.