A long series of criminal investigations have occurred in Brazil associated with Operation Car Wash. The first investigation was launched in March 2014, and is now known as of the investigation, with subsequent inquiries numbered sequentially and having code names such as (Operation Bidone), (Operation Casablanca), and so on. By February 2021, there were 80 announced phases of Operation Car Wash..
Besides these, there were other investigations that are considered offshoots of Operation Car Wash.
Background
Operation Car Wash () was an investigation into money laundering and political corruption in Brazil, which has been led by investigative judges, and carried out by the Federal Police.
Since its initiation, many investigations have been conducted by the Public Prosecutor's Office, the Attorney General's Office and the Federal Police from documents collected from search warrants, condução coercitiva warrants, and documents and testimonials obtained in cases of sovereign immunity. The goal of the investigation is to ascertain the extent of the money laundering scheme, estimated to be (US$– billion), largely through embezzlement of Petrobras funds. At least eleven other countries, mostly in Latin America, were involved, and the Brazilian company Odebrecht was deeply implicated.Kurtenbach, S., & Nolte, D. (2017). Latin America's Fight against Corruption: The End of Impunity. GIGA Focus Lateinamerika, (03). The U.S. Securities and Exchange Commission announced that the $853 penalty assessed by the DOJ was in addition to an agreed total of $933 million in disgorgement and prejudgment interest, in connection with a $2.5 billion overstatement of assets in a US$10 billion stock offering completed in 2010.
It has resulted in more than a thousand judicial warrants being served for three investigative judges. Politicians from Brazil's largest parties, including former presidents of Brazil, presidents of the Chamber of Deputies and the Federal Senate, and state governors are involved, as well as businessmen from large Brazilian companies. Originally a money laundering investigation, it expanded to cover allegations of corruption at the state-controlled oil company Petrobras, where executives allegedly accepted bribes in return for awarding contracts to construction firms at inflated prices.
The investigation is called "Operation Car Wash" because it was first uncovered at a car wash in Brasília. The Federal Police have called it the largest corruption investigation in the country's history. Petrobras later agreed to an $853 million settlement with the US Department of Justice on charges its executives violated the US Foreign Corrupt Practices Act, "paying hundreds of millions of dollars in bribes", then covering them up.
In Brazil
2014
Phase 1 — Operation Car Wash
On 17 March 2014, the Federal Police of Brazil (PF) initiated Operation Car Wash () with the temporary and pre-trial detention of seventeen people in seven states, including money changer Alberto Youssef. Five million reals ($ million) were seized in cash, 25 luxury cars, jewelry, paintings and weapons.
Phase 2 — Operation Bidone
On 20 March 2014, the Federal Police launched the second phase of Operation Car Wash, called Operation Bidone, serving six search and seizure warrants and one temporary arrest warrant, namely for former Petrobras Director of Procurement
Phase 3 — Operation Dolce Vita
On 11 April 2014, the Federal Police launched phase 3, Operation Dolce Vita, serving sixteen search and seizure warrants, three temporary arrest warrants and six condução coercitiva warrants. The lawsuit sought to gather evidence about the connection between and black marketeer Alberto Youssef at the company Ecoglobal Ambiental. The company had at least one contract of 443 million reals with Petrobras. He is suspected of offering a R$110,000 ($) bribe from Youssef to Deputy , depositing the money in the accounts of a cattle trader (Júlio Gonçalves de Lima Filho) and a transportation company (União Brasil Transporte e Serviços ) at the Deputy's request. The into Petrobras and the Joint Parliamentary Committee of Inquiry (; CPMI) of Petrobras were established in the Senate.
Phase 4 — Operation Casablanca
On 11 June 2014, the Federal Police launched Operation Casablanca with a search warrant and a warrant for remand against Paulo Roberto Costa, who was again arrested.
Phase 5 — Operation Bidone II
On 1 July 2014, the Federal Police launched phase 5, Operation Bidone II, serving seven search warrants, one temporary arrest warrant and one condução coercitiva warrant. The executive João Procópio Junqueira Pacheco de Almeida Prado was arrested in São Paulo as manager of the Swiss bank accounts of money changer Youssef. Five million reais ($ million) were frozen in the Swiss accounts.
Phase 6 — Operation Bidone III
On 22 August 2014, the Federal Police launched phase 6, Operation Bidone III, serving eleven search and seizure warrants and one for condução coercitiva at companies with ties to Costa. First arrested in March 2014 on a charge of concealing documents, Costa was released 59 days later, then again arrested days later when authorities discovered he had failed to mention a Portuguese passport and US$23 million in Swiss bank accounts.
Phase 7 — Operation Doomsday On 14 November 2014, the Federal Police launched Operation Doomsday, () mobilizing 300 officers to serve 49 search warrants, six pre-trial detention warrants, 21 temporary arrest and nine condução coercitiva compulsory appearance detentions, arresting presidents and directors of large Brazilian companies such as Construtora OAS, , Camargo Corrêa Construções, , and Construtora , which had a combined R$59 billion ($ billion) in contracts with Petrobras between 2003 or 2014. In addition to Youssef and Costa, the accused included , a former international director at Petrobras, Dalton Santos Avancini, president of Camargo Corrêa, Jean Alberto Luscher Castro, CEO of , José Adelmário Pinheiro Filho, president of OAS, and , president of .
Camargo Corrêa was the lead contractor on a R$24 billion ($ billion) construction project, the Abreu e Lima refinery in Pernambuco, at the time the most expensive in the country. According to CEO , the construction companies entered into consulting agreements with front companies which between them received millions in payment.
Dario de Queiroz Galvão Filho was sentenced to 20 years and six months imprisonment for active corruption, money laundering and criminal association. Erton Medeiros Fonseca received 13 years and five months of imprisonment for active corruption, money laundering and criminal association. Convicted of active corruption and criminal association, Jean Alberto Luscher Castro was given fourteen years and four months in prison. The men appealed their sentences.
Executives of Mendes Junior were also implicated in this phase, over contracts connected to the Paulínia Refinery (Replan), the Getúlio Vargas Refinery (Repar), the Rio de Janeiro Petrochemical Complex (Comperj), the Barra do Riacho Waterway Terminal, the Gabriel Passos Refinery (Regap), and at the Ilha Comprida and Redonda Waterway Terminals. Former vice-president Sergio Cunha Mendes was sentenced to 19 years and four months for his part in the kickback scheme. Paulo Roberto Costa was also among those convicted, and remained under house arrest at his home in Rio de Janeiro.
2015
Phase 8 — unnamed On 14 January 2015, the Federal Police (PF) served a preventive arrest warrant against Nestor Cerveró, accused of disposing of possibly illegally-obtained assets. Cerveró was arrested on landing at Tom Jobim International Airport in Rio de Janeiro..
Phase 9 — Operation My Way
On 5 February 2015, Federal Police launched the ninth phase of Car Wash, called "My Way". It has served 62 search and seizure warrants, temporary and preventive arrests and enforcement orders in four states of Brazil, to gather evidence about operators who intermediated the payment of bribes and kickbacks under Petrobras. Evidence was also collected regarding payments under BR Distribuidora, a subsidiary of Petrobras. During this phase forty-eight works of art were seized at 's house and taken to the Oscar Niemeyer Museum. Zwi Skornicki was named as one of the operators of the corruption scheme.
Phase 10 — Operation What country is this? On 16 March 2015, around 40 police officers carried out 18 arrests in Rio de Janeiro and São Paulo. The operation was codenamed "Operation what country is this?" () after comments made by to his lawyer as he was being detained by the police in 2014. The ex-director of Petrobras, Renato Duque, was arrested in his Rio de Janeiro home, and businessman was arrested in São Paulo. Individuals detained in this action were taken to Curitiba. On 27 March, the federal police arrested Dário Queiroz Galvão, one of the partners of the firm . Guilherme Esteves de Jesus, one of the suspects investigated in phase 9 of Operation Car Wash, was arrested in Rio de Janeiro for bribes paid to the Jurong Shipyard. Both Queiroz Galvão and Esteves de Jesus were wanted under pre-trial arrest warrants and were taken to police headquarters in Curitiba. On 8 April 2015, the Federal Justice Court of Paraná seized 163.5 million reals ($) from company, a figure corresponding to the amount of money that was due them from a writ of payment () from the state of Alagoas.
Phase 11 — Operation In the beginning
On 10 April 2015, the Federal Police began the phase called "In the beginning", () fulfilling 32 warrants, including seven for arrest, sixteen search and seizure and nine Condução coercitiva warrants. This phase had operations in six states: Paraná, Bahia, Ceará, Pernambuco, Rio de Janeiro and São Paulo. In this phase, former federal deputy , Leon Vargas (brother of ), former deputy , Élia Santos da Hora (secretary of Argôlo), former federal deputy Pedro Corrêa, Ivan Mernon da Silva Torres and Ricardo Hoffmann were arrested.
Phase 12 — unnamed
On 15 April 2015, PF served two arrest warrants, one of condução coercitiva and one of search and seizure in São Paulo. João Vaccari Neto, PT treasurer, was arrested. Vaccari's sister-in-law, Marice Correa de Lima, was on the run until 17 April 2015. She later surrendered to the police. Vaccari's wife, Gisela Lima, had a warrant for condução coercitiva, and was released after making a statement. The Federal Police forwarded to the Federal Public Prosecution Service (MPF) on 11 May 2015, thirty indictments against 22 people, investigated in the 11th phase, to investigate corruption crimes, contract fraud, money laundering and criminal organization, among others.
Phase 13 — unnamed
On 21 May 2015, Federal Police carried out the 13th phase of Operation Lava Jet in the states of Minas Gerais, Rio de Janeiro and São Paulo. An arrest warrant was served on ; in addition one warrant for was served, and four for search and seizure. The warrants for search and seizure in São Paulo were made at the residence of , Milton's brother. The other two were served in Rio de Janeiro and Minas Gerais. According to MPF, , a company owned by José Dirceu, received more than 1.4 million reals ($) from Jamp Engenheiros Associados Ltd, a company owned by Milton Pascowitch.
Phase 14 — Operation Erga Omnes