BRAZIL · ORGANISED CRIME
A São Paulo judge ruled on Thursday 12 November 2026 that a former city council president must stand trial in a case about a criminal gang and the city’s buses. The judge also ordered Milton Leite held in jail with no end date, and wrote that the case could show Brazil is already a narco-state, meaning a country whose institutions are deeply shaped by drug trafficking, if the evidence is confirmed at trial.
Leite, a São Paulo city councillor for 27 years, denies any link to the gang, the Primeiro Comando da Capital (PCC), a São Paulo-based criminal group. São Paulo is Brazil’s largest city, so a case about alleged criminal influence over its public transport and politics reaches well beyond the courtroom.
Key Facts
- Who Milton Leite, former São Paulo city council president, and 13 other accused.
- What A judge accepted the charge of criminal organisation and ordered preventive detention, meaning jail until trial with no fixed end, for all 14; two are fugitives.
- When Thursday 12 November 2026; Leite has been in custody since 18 September.
- Why it matters The judge wrote that the case could show Brazil is already a narco-state, if confirmed at trial.
What Happened
Judge Paulo Fernando Deroma de Mello, of a São Paulo state court that handles organised-crime and money-laundering cases, accepted the charge brought by state prosecutors on Thursday 12 November 2026. Leite and 13 others became defendants, meaning they now face trial.
The judge converted the temporary detention of Leite and 11 other detainees, a short-term arrest during an investigation, into preventive detention, which has no fixed end. He also ordered the preventive arrest of two accused who are fugitives.
Leite, of the centre-right União Brasil party, sat on the São Paulo city council from 1997 to 2024 and served several terms as its president. He has been in custody since Friday 18 September 2026, when he surrendered a day after Operation Vectura Corrupta, a police operation against the alleged network.
He is now held in a pre-trial detention centre in Guarulhos, in Greater São Paulo, and prosecutors allege he was the de facto owner of Transwolff, a São Paulo bus operator that investigators link to the gang. Leite denies this.
The Judge’s Warning
In his decision the judge wrote that it is possible to say the case “can prove definitively” that Brazil is already a narco-state, but only if the evidence is confirmed after trial. He did not present it as a finding of guilt.
A second politician is among the accused: Danilo Morgado of the conservative Liberal Party, a former mayoral candidate in Praia Grande, a coastal city in São Paulo state. His lawyers have contested the arrest order.
These are the judge’s words about what the prosecution’s evidence may show. They are not a verdict, and none of the accused has been convicted.
The Defence
Leite’s lawyers say the charge rests on mentions by third parties and hearsay, with nothing concrete or current to justify preventive detention. They say he has always cooperated with investigators.
Leite himself denies involvement. Lawyers for other accused have also rejected the charges.
Why It Matters
A São Paulo judge is putting a long-serving politician on trial over alleged links to organised crime, in a city where public transport is central to daily life. The mechanism alleged is control of bus companies by a criminal group, with a politician said to help run them.
The strongest counter-view is the defence’s. Its lawyers say there is no concrete evidence tying Leite to the PCC, and the charge has not been tested at trial.
What Happens Next
No trial date has been reported. The accused have 10 days to file written defences, reports say.
Whether the two fugitives are found is also open. We will report the next court step, and the day’s other city news is in our São Paulo Daily Brief.
What It Means for You
For US readers with business or travel in São Paulo, this is a story about institutions rather than prices. We found no reported market effect, so treat it as political and security background.
For who holds influence in Brazil, see our explainer on who dominates Brazil and The Rio Times Latin America Power Index, our ranking of political influence in the region. More coverage is on our Brazil news page.
What Is Not Known
It is not known when the trial will start or how the evidence will hold up in court. A minister of the STJ, Brazil’s top court for federal law, denied Leite’s request for an urgent release order on 23 September.
It is unclear whether any appeal against the preventive detention will succeed. The judge’s reading of the case remains conditional on the trial.
Frequently Asked Questions
Who is Milton Leite?
A former São Paulo city councillor, in office from 1997 to 2024, who served several terms as council president. He denies any link to the PCC.
What did the judge decide on 12 November 2026?
He accepted the criminal-organisation charge against Leite and 13 others and ordered preventive detention, which has no fixed end. Two of the 14 are fugitives.
What is the PCC?
The Primeiro Comando da Capital is a São Paulo-based criminal group. Investigators say it has influence over some of the city’s bus companies.
Has Milton Leite been convicted?
No. He is a defendant, and the judge’s narco-state wording depends on the evidence being confirmed at trial.
Sources: Ruling of the São Paulo state court of 12 November 2026 and statements of the defence lawyers, as reported by Brazilian outlets; São Paulo City Council records.
This article was produced by The Rio Times’ automated AI newsroom. Editorial responsibility: Matthias Camenzind, Publisher and Editor-in-Chief. The Rio Times also runs Ask Rio Times, which answers from 100,000+ of our own articles, the daily Latin America Power Map, and prediction-market odds on elections and markets.. How we use AI · Report an error
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