Role ex-President Luiz Inácio Lula da Silva may have played in Brazil’s “Operation Car Wash”
8 October, 2016
Teori Zavascki, Minister of the SFC (Supreme Federal Court), gave authorisation, October 6, for Operation Lava Jato to be split into several targeted investigations. He agreed that one of these would specifically focus on the role ex-President Luiz Inácio Lula da Silva may have played in the alleged corruption scandals.
One part of the investigation, so-called the “Quadrilhão” (“The Big Gang”), looks in particular at the political nucleus involved in the Petrobras corruption scheme. In response to a plea by Brazil’s Attorney General of the Republic, Rodrigo Janot, SFC Minister Zavaski divided the trial into four separate investigations.
[February 25 2015 HSBC Swiss accounts: $110m belonged to individuals linked to Brazil’s “Operation Car Wash” ]
Brazil haslaunched an investigation into whether accounts included in the files are linked to a major corruption scandal which in recent months has engulfed the Brazilian government and state-owned oil company Petrobras.
Analysis of the files indicates that 11 accounts held at HSBC Suisse between 2006 and 2007, which in 2007 had deposits totalling in excess of $110m (£71m), belonged to individuals linked to the investigation, known as “Operation Car Wash”.
Separately, Brazil’s tax authority said on February 13 it would probe 6,600 undeclared accounts with HSBC’s Swiss private bank linked to Brazil.
[February 14 Link between HSBC Swiss accounts, Petrobras scandal and Lily Safra?]
Operation Carwash . Police and prosecutors believe Petrobras contracts were overinflated and the cash either creamed off for personal use or paid off to political parties, including the Workers Party of newly re-elected President Dilma Rousseff. So far more than 40 people have been detained over their involvement in the scandal, which is known in the country as “Operation Car Wash.”
The second source said that “there is a clear link between ‘Operation Car-Wash’ and the HSBC Swiss bank accounts.” He declined to elaborate further and Reuters could not independently verify his account
HSBC’s Swiss unit was largely acquired as part of its purchase of late Brazilian-Lebanese financier Edmond Safra’s Republic New York Corp and Safra Republic Holdings. HSBC (Hong Kong and Shanghai Banking Corporation) bought Republic New York Corporation and its sister company Safra Republic Holdings for $10.3 billion (£6.3 billion) – In 1972 Safra used the $40M of capital that he accumulated from dealings in Italy to buy into a small Geneva finance house and, propped up by the assets of his wife, the former Brazilian heiress Lily Monteverdi. The business was eventually to expand and grow into the Trade Development Bank, a large private and trade finance bank, The Safra Group, which comprises a number of European private banks and Safra National Bank of New York, Republic’sTDB French operations and London-based banknote business were sold back to Safra. Safra left 50% of his assets to several charities, with the remainder divided up between his family members and wife who received $ 800 million
Aug 9 13 HSBC Private Bank International has charged Safra National Bank of New York for allegedly poaching seven bankers liable for $4 billion in private banking assets and attempting to steal clients. HSBC has sued Safra and five of the former HSBC bankers, who provided wealth management services for HNW clients in Central America, for allegedly conspiring to help Safra build a Latin American private banking business to compete directly with HSBC. HSBC said that Manuel Diaz and Jose Ortega, presidents of the bank’s Latin American private banking business based in Miami, had been talking with Safra since May 2013, about helping the competitor build a Latin American business. According to the lawsuit, Ortega and six other employees resigned between July 15 and July 31 and Safra has met 11 HSBC employees to offer them a job with a better compensation package. The lawsuit also names former HSBC bankers Jorge Hine, Jessica Valera and Diana Saludes as defendants along with Diaz and Ortega.