GAECO operation targets illegal gambling in southern Brazil
Brazilian authorities carried out arrests and seizures in Santa Catarina and Rio Grande do Sul.
Key Points
- Gaeco executed 13 arrest warrants and 34 search and seizure orders in two Brazilian states
- Authorities seized $400,000, luxury vehicles and blocked accounts linked to the scheme
- Investigators said suspects used shell companies and “straw men” to launder illicit funds
The Brazilian Special Action Group for Combating Organized Crime (Gaeco) launched a new operation aimed at dismantling a large-scale illegal gambling network in southern Brazil.
The action, named Operation Shutdown, targeted individuals allegedly involved in running the traditional Brazilian lottery-style numbers game known as “Jogo do Bicho,” which remains prohibited under the national law.
Authorities confirmed that 13 preventive arrest warrants, and 34 search and seizure orders, were executed across Santa Catarina and Rio Grande do Sul.
The operation resulted in the confiscation of $400,000 in cash and imported luxury cars and, in addition, movable and immovable assets were seized, while bank accounts connected to the suspects were frozen.
According to Gaeco, the group made use of shell companies, “straw men” and banking transactions incompatible with declared income in order to disguise the proceeds of the illegal gambling operation.
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“The criminal group, according to our findings, acted repeatedly and in a highly organised manner, employing complex mechanisms to conceal the illicit origin of resources obtained from gambling activities, particularly the ‘jogo do bicho,’” Gaeco said in a statement.
While categorized as a misdemeanor under Brazilian law, illegal gambling schemes such as this one have frequently served as entry points for broader criminal structures, including money laundering and financial fraud.
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