Brazil's Federal Police Uncover $34 Million Illegal Carbon Credit Scheme in Operation Greenwashing
Source: The DairyNews
June 5, Brazil’s Federal Police initiated Operation Greenwashing to target a criminal organization implicated in the illicit sale of approximately US$34 million in REDD carbon credits. The operation led to the arrest of four individuals and the confiscation of significant assets including two airplanes, a speedboat, and luxury vehicles such as a Porsche and two Mercedes-Benz cars.
The arrests and seizures occurred primarily in São Paulo state, with significant activities reported in the cities of Araçatuba, where the group's leaders reside, and Birigui. This crackdown is part of a broader investigation into a decade-long land fraud scheme originating from Lábrea in Amazonas state, which involved the duplication and forgery of property titles to illegally claim around 538,000 hectares of public lands.
The Federal Police have detailed that between 2016 and 2018, the group escalated its illicit activities by reusing property titles and inserting false data into the Land Management System with assistance from public servants and technical managers. Besides trafficking in carbon credits, the organization engaged in illegal logging and cattle ranching within protected areas, including the raising of non-existent "ghost" cattle and selling virtual timber credits, all underpinned by fraudulent environmental licensing.
The scheme also involved the laundering of illegal timber through the purchase of fictitious timber credits, a practice that enabled the "laundering" of timber illicitly harvested from Indigenous territories or protected zones. Over one million cubic meters of timber were extracted, resulting in environmental damages valued at US$114 million, with the criminal group also acquiring US$155 million worth of illegally occupied land.
The Federal Police have detailed that between 2016 and 2018, the group escalated its illicit activities by reusing property titles and inserting false data into the Land Management System with assistance from public servants and technical managers. Besides trafficking in carbon credits, the organization engaged in illegal logging and cattle ranching within protected areas, including the raising of non-existent "ghost" cattle and selling virtual timber credits, all underpinned by fraudulent environmental licensing.
The scheme also involved the laundering of illegal timber through the purchase of fictitious timber credits, a practice that enabled the "laundering" of timber illicitly harvested from Indigenous territories or protected zones. Over one million cubic meters of timber were extracted, resulting in environmental damages valued at US$114 million, with the criminal group also acquiring US$155 million worth of illegally occupied land.
