FBI in Brazil to Interview Rio Lava Jato Whistleblower

RIO DE JANEIRO, BRAZIL – Six U.S. agents, three from the FBI and three from the U.S. State Department, landed in Rio de Janeiro last weekend to interview a whistleblower from Operation Lava Jato involved in the former governor Sérgio Cabral‘s scheme. Cesar Romero, the former undersecretary of Health of Rio, testified to the group for seven hours at the headquarters of the Federal Prosecutor’s Office (MPF) in Rio.

In the room were a public prosecutor, a translator, and Romero’s lawyer. The whistleblower signed a confidentiality agreement for the deposition. The UOL report had access to some information regarding what occurred during the meeting.

The Americans questioned the whistleblower about foreign companies producing medical equipment that had been part of the fraud scheme of the State Health Secretariat of Sérgio Cabral’s administration.

Romero provided information on fifteen companies. The Americans also asked about three businessmen: Miguel Iskin, Stuécio Amora, and Ely Dabasons, thought to be commercial representatives of international companies. They also wanted to know if Romero was willing to continue cooperating. The group’s goal is for the Brazilian to provide information on corrupt American suppliers.

The whistleblower is free, pending the start of compliance with his cooperation agreement, which could lead to a term of house arrest, as there are still appeals from the accused parties against his statements made to Lava Jato.

Romero was charged in the context of Fatura Exposta (“Exposed Invoice”) operation of the MPF, which identified that the modus operandi of the criminal organization led by Cabral, which charged five percent on all contracts signed by the state, was also applied in the Health portfolio.

According to the MPF’s denunciation, the scheme was operated by the former Secretary of Health of Rio de Janeiro, Sérgio Côrtes, and by Romero, who directed the bids for medical services and equipment to the cartel organized by Miguel Iskin and Gustavo Estellita, partners in the companies Oscar Iskin and Sheriff Serviços e Participações. In 2017, the companies denied any participation in illegal practices.

According to the report, the businessmen were in charge of bringing into the country the foreign companies that competed in the international biddings, which were only announced in Brazil. According to the MPF, the companies interacted with each other, alternating between themselves to give priority to each one at a time. As a result of the cartel arrangement, those involved knew how much each company would charge for the products before the international trading session was even quoted.

Miguel Iskin’s lawyer, Alexandre Lopes, said that “Cesar Romero’s word should be assessed with reservations.”

“It has been demonstrated that he has lied several times. I find it difficult for him to fool the FBI,” the lawyer replied to UOL.