São Paulo fines Ultrafarma and Fast Shop $2.8 bn for tax‑credit fraud

The São Paulo State Treasury and the Public Ministry imposed total fines of R$ 2.8 billion on retailer Ultrafarma and electronics chain Fast Shop for allegedly participating in a “fura‑fila” scheme that inflated ICMS tax‑credit refunds. Fast Shop received a single fine of R$ 1.47 billion, while Ultrafarma was hit with three separate penalties of R$ 358 million, R$ 476 million and R$ 555.8 million, amounting to R$ 1.38 billion.

The penalties stem from Operation Ícaro, launched by the São Paulo Public Ministry, which uncovered a network of state auditors led by Artur Gomes da Silva Neto – nicknamed “King” – accused of demanding bribes to accelerate and overstate tax‑refund claims. Investigators estimate the scheme moved about R$ 1 billion in illicit payments and may involve more than R$ 100 million in cryptocurrency assets. The owners of the companies, Sidney Oliveira of Ultrafarma and Mario Otávio Gomes of Fast Shop, were arrested during the probe but later released pending trial. The corruption ring is believed to have operated since at least 2002.