SANTIAGO, Chile, June 3 (UPI) -- Brazil's federal court has authorized freezing assets that belong to suspects, including former officials from the National Institute of Social Security, or INSS, and consulting firms, in connection with a massive pension fraud scheme that affected millions of retirees and pensioners.
The pension fraud scheme, which operated between 2019 and 2024, diverted roughly 6.3 billion reais -- more than $1.1 billion -- through unauthorized deductions from the benefits of more than 6 million INSS recipients.
While initial investigations suggest the unauthorized deductions began during the presidency of Jair Bolsonaro, the scheme's growth under President Luiz Inácio Lula da Silva has placed his administration in a politically uncomfortable position -- particularly because one of the unions involved is led by Lula's older brother, Frei Chico.
For Lula, who was previously jailed and later acquitted on corruption charges, these incidents pose a direct challenge to his image and his promise of a transparent government.
Related
