São Paulo investigations probe Casas Bahia and tax credit bribery scheme

Investigations by the São Paulo Public Prosecutor's Office (MPSP) and the Council for Financial Activities Control (Coaf) have uncovered a major scheme involving the alleged bribery of tax officials to expedite ICMS tax credits.

New data from seized spreadsheets suggest that the retailer Casas Bahia may have paid at least R$ 11.6 million in bribes to the São Paulo Finance Secretariat between 2022 and 2023. This figure significantly increases the previously identified amount of R$ 2.98 million. The scheme allegedly allowed companies to bypass standard procedures to secure tax credits under irregular conditions.

Additionally, Coaf reports indicate that lawyer Nelson Wilians transferred R$ 6.6 million to Icon Properties, a real estate firm owned by Michael Klein, an heir to the founding family of Casas Bahia. These 15 transfers occurred between September 2024 and September 2025. Wilians and Klein were previously business partners in the holding company TMA until 2023.

The broader investigation, known as Operation Distrato and Operation Ícaro, targets a network of tax lawyers and public officials. The total estimated loss to the São Paulo public treasury due to forged ICMS credits is approximately R$ 3.8 billion.