Rio Prosecutor Claims It Has Evidence Universal Church Was Used to Launder Corrupt Funds

RIO DE JANEIRO, BRAZIL – The Rio de Janeiro State Prosecutor’s Office (MP-RJ) says it found evidence of “atypical billion-reais transactions” from the Universal Church of the Kingdom of God (IURD) and said it was “plausible to infer” that the religious organization is being “used as an instrument to launder money resulting from the endemic corruption installed at the top of Rio’s municipal administration.” Mayor Marcelo Crivella is a IURD-licensed bishop.

The MP investigation began in March this year and is looking into an alleged ‘Kickback HQ’ at Rio’s City Hall.

The analysis that mentions the Universal Church is found in a 262-page document, signed on September 2nd this year, forwarded to the Court by the Deputy Prosecutor General of Criminal Affairs and Human Rights of the MP-RJ, Ricardo Ribeiro Martins.

In this petition, the Deputy Prosecutor General mentions the existence of a Financial Intelligence Report (RIF) from the Council for the Control of Financial Activities (COAF), a body linked to the Ministry of Treasury, pointing out that the religious organization “was the object of a report due to the identification of financial transactions amounting to R$5,902,134,822” between May 5th, 2018 and April 30th, 2019.

The RIF compiles data from several CNPJs (Legal Entity Tax Identification) used by IURD. It includes inbound and outbound cash transactions, as well as bank transfers. The registration of atypical transactions in a COAF RIF does not necessarily mean that a crime has occurred.

According to the MPE-RJ, the occurrence that justified the notification to the COAF is related to article 1, subsection I, item “b” of the Central Bank’s Circular Letter number 3,542. This part of the rule concerns “transactions in kind conducted by clients whose activities are characterized by the use of other instruments for the transfer of funds, such as checks, debit or credit cards.”

In the documents, there are no details on how this alleged money laundering works. However, the Deputy Prosecutor General makes his allegation after analyzing evidence, among which: “the billion-reais atypical transactions” by the IURD, Crivella’s “notorious link” with the church and Mauro Macedo’s “involvement in the criminal plot”.

Mauro, cousin of Biship Edir Macedo, founder of the IURD, coordinated the current Mayor of Rio’s political campaigns and is mentioned in Lava Jato’s reports as a recipient of slush funds. According to the Prosecutor’s Office, Mauro encouraged entrepreneurs to take part in the most varied types of corruption.

Another element used in the MPE-RJ’s analysis are the cell phone messages seized in March from Rafael Alves during the first phase of the operation. Despite not holding public office in the Municipality, Rafael Alves is alleged to have tremendous influence in the government – and clues followed by the MPE-RJ show that he would charge and collect kickbacks from suppliers, possibly with endorsement and in association with Crivella.

Rafael Alves spoke of church in messages

In early 2018, Rafael Alves sent several messages to third parties expressing “frustration with the spaces he filled in the government” – and saying that he would be able to disclose to the authorities “all the corruption and money laundering schemes that occur in the government,” with the “direct involvement of Marcelo Crivella, his family and the church, in explicit reference to the Universal Church of the Kingdom of God.”

In a message sent on January 19th, according to the MPE-RJ, Rafael Alves wrote: “Nego destroys a politician. I mess with a church”. Then he continues, according to the investigators: “I simply don’t want it to involve my brother or my surroundings”. Finally, Rafael Alves states: “By doing this I destroy him, the church, etc.” Rafael’s brother, Marcelo Alves, once held the presidency of RioTur – and had been through a process of attrition with other Crivella allies, until he was dismissed in March this year, after the operation’s first phase.

For the MPE-RJ, Rafael indicates that “should he break up with Marcelo Crivella and his criminal organization”, the harmful consequences will be great because “it involves money – and a lot of it – and hard information”. The prosecutor points out that “Rafael Alves makes it clear that he has knowledge and controls several of the government’s criminal activities, under the direct leadership of Marcelo Crivella.”

Rafael’s cell phone is considered a “ticking bomb” in the investigation by the prosecutors. But it was not easy to find the device. In March, in a search against Rafael Alves, he delivered an empty cell phone to the authorities. Suspicious, they found another cell phone hidden in his clothes. Two other phones were found in the car of the operator’s wife, Shanna Garcia, daughter of Waldomiro Paes Garcia, the racketeer ‘Maninho’, murdered in 2004.

What they say

In a note, the Universal Church of the Kingdom of God said that it has not been legally notified of the charges and that it has no knowledge of the document cited. It classified as immoral, the information leak by authorities without the party involved knowing about the investigation. It also says that all its financial transactions are “entirely legitimate” and declared to the relevant authorities.

The church further states that regarding Mayor Marcelo Crivella, “any bishop or pastor who decides to pursue a political career is excused from his duties in the church, and begins to deal exclusively with public activity.”

In addition, the IURD says that there is no financial relationship between Marcelo Crivella, his political campaigns and the Church, and that it has no direct or indirect involvement in political party activity in Brazil or in any other country where it develops missionary activity.

It states, “In the last thirty years, no Brazilian religious institution has been as persecuted, attacked, inspected and judged as the Universal.” “In all the proceedings, the Church and its officials have been innocent,” adds the IURD. It concludes by stating that the authors of the accusation, which it classifies as infamy, will answer in court for what it describes as false accusations and prejudice against Christians.

Mayor Marcelo Crivella declared that there is nothing in the case that describes any illegal activity he may have committed. He further said that nothing was found in the searches of his home, office, bank or cell phone.

On Saturday, Crivella released videos to defend himself against the Prosecutor’s charges. He denied political interference to prevent the demolition of Romario’s house, but did not address the MP’s main charges.

The Mayor criticized the Globo news report regarding the State Prosecutor’s Office and the Civil Police denunciations and stated that they have the purpose of interfering in the electoral process. In its defence, Globo claims the report was entirely consistent with what the prosecutors said and with the documents that supported the operation — and denies it had any purpose except to inform the public.

Rafael Alves’ defense counsel reported that he denies the charges, which he referred to as hasty and said he has been trying for over nine months to provide clarification to the Prosecutor’s Office, but has not had the opportunity.

Operation Hades

The MP’s investigations are part of Operation Hades, which included searches by the Rio de Janeiro Prosecutor’s Office (MPRJ) and the Civil Police on Thursday morning, September 10th, at Rio’s City Hall, the Mayor’s private home and the official residence. Agents seized one of Crivella’s cell phones.

The operation began in March this year and is investigating an alleged ‘Kickback HQ’ at Rio’s City Hall. The judicial decision that authorized Operation Hades on Thursday, states that behind the deeds of Mayor Marcelo Crivella in Rio’s City Hall is Rafael Ferreira Alves, who has no position in the municipal administration. Prosecutors claim that Rafael and Crivella have a leading role in a corruption scheme in Rio’s City Hall.

Through his press office, Crivella said the operation was “strange” and “unjustified” and that last week he was with the Prosecutor’s Office to provide his banking, telephone and fiscal secrecy.

The inquiry was opened in early December by the MPRJ, based on the denunciation by black-market banker Sérgio Mizrahy. He was arrested in Câmbio Desligo operation, an unfolding of Lava Jato in Rio.

According to the tip-off, Rafael Alves is the scheme’s operator. Rafael does not have a position in the city hall, but, according to a report in the newspaper O Globo, he became one of Crivella’s trusted men for helping him to enable the donation of funds from companies and individuals in the 2016 campaign.

Messages exchanged between Rafael Alves, appointed as Mayor Marcelo Crivella’s right-hand man, and alleged spin-doctor Marcelo Faulhaber show disagreements between the members of the scheme set up in Rio de Janeiro’s city hall.

In one of the messages, Faulhaber called Rafael Alves a “bomber” for having knowledge of illegal activities in the government. Faulhaber claims that the Mayor was aware of the corruption schemes.

Source: G1