Sao Paulo Power Broker Surrenders in Probe of Gang Grip on City Buses
Key Facts
Investigators suspect Brazil’s largest criminal gang has worked its way into the companies that run Sao Paulo’s neighbourhood buses. On Friday, one of the city’s most powerful politicians surrendered in the case, denying every allegation.
Milton Leite, who led Sao Paulo’s city council for four terms, surrendered to police on Friday 18 September 2026. He walked into a police station in Mogi das Cruzes, east of the city, around 4pm, Folha de S.Paulo reported.
Why This Matters
Sao Paulo is Brazil’s largest city, and Leite presided over its council for four terms, Jornal Nacional reported. TV Globo’s evening news also said he was a councillor for 27 years and served as acting mayor several times.
He now chairs the Sao Paulo branch of a federation joining the Uniao Brasil and Progressistas parties. He did not seek re-election in 2024, but Metrópoles reports that two of his sons are candidates on 4 October.
Alexandre Leite, a federal deputy, is running for the state assembly, while state deputy Milton Leite Filho seeks a federal seat. Metrópoles said the pair had received almost R$3.7 million (US$717,000) from Uniao Brasil’s campaign fund.
Dollar figures here use the central bank’s 18 September rate of R$5.16 per US dollar. Governor Tarcisio de Freitas, who is seeking re-election, has also been asked about his ties to Leite.
On 18 September he called the relationship institutional and said state investigations know “no ally, no adversary”, Metrópoles reported. The case therefore lands in the final weeks of a national and state election campaign.
The Gang and the Buses
The PCC, or First Capital Command, was founded in a Sao Paulo state prison in 1993, according to research group InSight Crime. InSight Crime calls it Brazil’s largest and most powerful criminal organisation, with operations in more than 20 countries.
The new inquiry, Operation Vectura Corrupta, is run by the Civil Police and Gaeco, the state prosecutors’ organised crime unit. Police and prosecutors say 12 of the 22 companies running city buses show signs of PCC ties, Jornal Nacional reported.
They allege contract capture, circulation of illicit money and concealment of the real owners, according to that report. The case follows Operation Fim da Linha, or “End of the Line”, which targeted bus firms Transwolff and UPBus in April 2024.
The city placed both companies under intervention that month and later moved to end their contracts, Metrópoles reported. Folha reported that investigators also suspect PCC financing of the 2024 municipal campaigns and of the current race.
How the Surrender Unfolded
Leite arrived at the local narcotics investigation unit, known as Dise, with lawyer Aloisio Lacerda Medeiros. Folha reported that the inquiry itself was handled at that Dise office in Mogi das Cruzes.
He gave a statement and was taken for a forensic examination at around 7pm, Folha reported. He was then moved to the public jail in Mogi das Cruzes, according to G1 and Jornal Nacional.
G1 reported that Levi dos Santos Oliveira, a former head of city transport agency SPTrans, is held there too. Police failed to find him at home on 17 September, and Jornal Nacional said he spent over 30 hours as a fugitive.
What Leite Says
Leaving for the forensic exam, Leite spoke briefly to reporters and denied any wrongdoing. “Eu não cometi nenhum crime e nada devo,” he said, according to Metrópoles, meaning he committed no crime and owes nothing.
Folha reported that he spoke when a reporter asked whether he regretted anything. “Only those who commit a crime repent,” he answered, in G1’s version of his reply.
He said he believes in the justice system and in the work of the police, G1 reported. “I complied with the decision,” he added, stressing that he came in on the day he had promised.
On 17 September, he told Folha by phone that he did not know anyone in the PCC and did not own Transwolff. He said his dealings with the bus sector were institutional and requested by then mayor Bruno Covas.
The Lawyers’ Position
Medeiros told Folha that he had asked the court for full access to the case file. “Milton is calm, he has nothing to do with this story,” the lawyer said, in Folha’s account.
Leite’s representatives told G1 they had not had access to all the information in the case. For that reason, G1 reported, the defence has not yet asked a court to release him.
What Police and Prosecutors Allege
A Civil Police report cited by G1 says Leite is named repeatedly as directly running some PCC-controlled companies. Investigators also allege he was the “de facto owner” of Transwolff, a claim he denies.
G1 reported that this claim rests on statements by military police officers in a military court procedure. Jornal Nacional said the inquiry describes a “close relationship with organised crime”, which Leite rejects.
While hunting for Leite on 18 September, police searched the Sorocaba home of a state assembly aide. They seized R$280,000 (about US$54,000) and US$89,000 in cash, and the person there could not explain its origin, G1 reported.
None of these allegations has been tested in court, and Leite has not been charged or convicted. Under Brazilian law, as G1 noted, no suspect is considered guilty before a final conviction.
The Catch in the Evidence
Folha reported that the request to detain Leite relied on two mentions of his name by other people. One is an audio file on a seized phone, and the other is testimony to military police internal affairs.
The newspaper said the police and prosecution filings show no other evidence, such as payments or corporate links. That gap is likely to be central to any defence challenge to his detention.
The Warrant and the Courts
Leite is held under a temporary arrest warrant, which lets police detain a suspect during an inquiry. Metrópoles reported that the order runs for 30 days and can be renewed once for the same period.
Folha said the warrants came from the state Court of Justice’s 8th Criminal Chamber and a specialised organised crime court. In custody hearings, judges check an arrest’s legality and necessity and any mistreatment, the National Council of Justice says.
G1 reported that ten suspects arrested on 17 September were due for such hearings on Friday. One of them, state assembly candidate Danilo Morgado of the Liberal Party, stayed in custody, Santa Portal reported.
Who Else Was Targeted
The operation sought 16 people for temporary arrest and searched 18 addresses on 17 September, Folha reported. Raids took place in Sao Paulo, Santos, Praia Grande, Cubatao, Diadema, Sao Bernardo do Campo and Santana de Parnaiba.
Those arrested include Levi dos Santos Oliveira, who ran SPTrans from 2019 to February 2025. Investigators say he held periodic meetings with a suspected PCC intermediary about transport interests, Folha reported.
Police suspect the PCC financed Morgado’s 2024 run for mayor of the coastal city of Praia Grande, Santa Portal reported. His lawyers told the site that the file shows no objective evidence of any financial benefit to that campaign.
Paulo Sirqueira Korek Farias, known as Paulo Camarao, was still being sought on Friday, Jornal Nacional reported. He owns bus firm A2 Transportes and heads football club Agua Santa, and A2 denies any link to organised crime.
The Election Clock
Brazil’s electoral code bars the arrest of registered candidates from 19 September, 15 days before the 4 October vote. Santa Portal reported that only arrests in the act of a crime are allowed until 48 hours after voting ends.
Leite said in July 2024 that he would not seek another council term, Metrópoles reported. The rule matters mainly for any further arrests of candidates in this or other inquiries.
What It Means If You Live in or Invest in Sao Paulo
Bus services are not expected to stop, because the city says it is acting to protect the network. Mayor Ricardo Nunes has set up a working group to study a possible intervention in A2, Folha reported.
Jornal Nacional reported that A2 removed Paulo Camarao after the city threatened to intervene. Riders on neighbourhood lines could still see operator changes if the city intervenes again.
For investors, the case adds scrutiny to public transport concessions and to party structures in the state. Any shift in Leite’s legal position could also affect his party’s alliances ahead of the October vote.
What Is Not Yet Known
It is not yet public whether Leite has had his custody hearing or what the judge decided. The defence has not said when it will seek his release or file a habeas corpus petition.
Police have not said whether they will ask for the temporary detention to become preventive detention. Prosecutors have not filed charges, and no court has ruled on the substance of the allegations.
The origin of the cash found in Sorocaba has not been explained by investigators or the defence. Nor is it clear when the remaining fugitives, including Paulo Camarao, will be found.
Frequently Asked Questions
Why does Milton Leite’s arrest matter?
He is one of Sao Paulo’s most influential politicians and chairs a party federation in the state. His arrest comes weeks before the 4 October election, in which two of his sons are candidates.
Has Milton Leite been charged with a crime?
No, he is held under a temporary arrest warrant while the inquiry continues. Prosecutors have not filed charges, and he denies all the allegations.
How long can he be held?
Metrópoles reported that the temporary arrest order lasts 30 days and can be renewed once. A judge can also end it earlier.
What is Operation Vectura Corrupta?
It is a Civil Police and prosecution inquiry into suspected PCC control of Sao Paulo bus companies. Investigators say 12 of the city’s 22 operators show signs of gang ties.
Sources: Folha de S.Paulo, Milton Leite presents himself to police and is arrested in Mogi das Cruzes, G1, After surrendering, Milton Leite says he is innocent, G1 Jornal Nacional, Leite surrenders after more than 30 hours as a fugitive, Metrópoles, Leite statement on leaving the police station, G1, Ten targets of the operation arrested, six still at large, Metrópoles, Leite’s sons and the election, Metrópoles, Tarcisio on the Leite investigation, Metrópoles, city to end Transwolff and UPBus contracts, Santa Portal, Danilo Morgado stays in custody, Santa Portal, candidates cannot be arrested from 19 September, InSight Crime, First Capital Command (PCC) profile, National Council of Justice, custody hearings explained, Banco Central do Brasil, PTAX dollar rate
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