Paulo Roberto Costa, the former director of Petrobras, one of the largest energy companies in the country of Brazil, was detained by federal police earlier this week in his Rio de Janeiro residence. He has been accused of having a connection to an illegal gang that laundered money while he was the head of the company's downstream operations.
Along with the connection to the gang, Costa has also been charged with destroying evidence. According to local law enforcement officials, Costa and his relatives eliminated documents that had information regarding the consulting firm he had opened up after leaving Petrobras. It is through this company that he is believed to have worked with illegal business partners.
The gang – which was dismantled at the beginning of this week – is accused of laundering over $4 billion through various companies. The break-up of this group resulted in the arrest of 24 people, all of whom are going to face trial for serious financial crimes. Their business dealings with Costa, all on official records that have not been destroyed, is what led to his arrest.
Costa's arrest comes during a time when government officials – including Brazil's Congress and Attorney General's office – are closely examining the finances and dealings of Petrobras. Even beyond Costa, the oil giant is thought to have accepted more than $100 million in bribes from a Dutch oil rig leaser in exchange for lucrative oil platform contracts.
At the time of his arrest, according to police reports, there was nearly $500,000 in Costa's home. In addition to these money laundering charges, Costa is also being investigated for the acquisition of an oil refinery in Pasadena, California, by Petrobras a few years ago. Costa has not yet made a public statement regarding the crimes he faces.
