Brazilian police probe a pension fraud scheme that stole $1 billion from retirees

SAO PAULO — Brazil 's federal police said Wednesday they are investigating a scheme that diverted over 6 billion reais ($1.05 billion) from pensions paid by the National Social Security Institute.

The probe targets 11 organizations that operated between 2019 and 2024, authorities told reporters. The scheme had retirees listed as members of associations that collected part of their monthly pensions as fees for the organizations. However, the retirees had never joined such associations nor authorized the deductions.

As part of the probe, the president of the National Social Security Institute, Alessandro Stefanutto, and other directors were removed from their positions. The social security office did not immediately respond to a request for comment by The Associated Press.

Federal police said they seized on Tuesday 1 billion reais ($175.8 million) in assets and also issued arrest warrants for six people: three were arrested and three are still at large.

It was not immediately known who the arrested persons were.

If the probe finds enough evidence, those investigated could face corruption charges, as well as charges of breaching secrecy, forging documents, setting up a criminal organization and money laundering.