Brazil Charges First Lawmakers in Petrobras Graft Probe
The former members of congress are accused of money laundering, embezzlement and other crimes
Adir Assad (second left), Sonia Mariza Branco (third left, bottom), Lucelio Goes (top center) and former Petrobras executive Renato Duque (second right) are escorted by federal police as they leave the Institute of Forensic Science in Curitiba in March. PHOTO: RODOLFO BURHER/REUTERS
RIO DE JANEIRO—Brazilian prosecutors charged four former members of congress with money laundering, embezzlement and other crimes related to alleged corruption at state-run oil firm Petroleo Brasileiro SA, the first lawmakers to be charged in the case.
The prosecutors announced the charges on Thursday against Andre Vargas, a former lawmaker of the ruling Workers’ Party; Luiz Argôlo, a former lawmaker of political party Solidariedade; and Pedro Corrêa and Aline Corrêa of the Progressive Party (PP). Mssrs. Vargas, Argôlo and Corrêa were arrested in April and remain in custody. Ms. Corrêa, the daughter of Mr. Corrêa, wasn’t arrested.
The charges are part of Operation Car Wash, a case in which Petrobras, along with some of Brazil’s biggest construction firms and about 50 current and former politicians are alleged to have participated in a yearslong bribery scheme.
Investigators accuse Petrobras officials of taking a cut of cash from inflated contracts and funneling the rest to lawmakers and political parties.
Prosecutors said Thursday that the total estimated amount alleged to have been paid in bribes was $2 billion.
Federal prosecutor Deltan Dallagnol said more public officials will be charged, but he declined to say when.
This year, the Supreme Court authorized the investigation of the current and former politicians alleged to have participated in the scheme. Under Brazilian law, lawmakers are afforded special considerations and can only be tried by the Supreme Court.
Messrs. Vargas, Argôlo and Corrêa have previously denied involvement in the alleged corruption scheme. The lawyers for the four former lawmakers couldn’t immediately be reached for comment.
Mr. Vargas has been accused by prosecutors of benefiting from a similar scheme with advertisement contracts with other public institutions.
Members of the Workers’ Party of President Dilma Rousseff have previously said that donations to their party were legal and approved by the electoral court. The scandal has been a political embarrassment for Ms. Rousseff and has sharply reduced her popularity.
Since the start of the investigation in March 2014, four former Petrobras executives and at least 23 construction executives have been charged with crimes, such as corruption and money laundering. Some have admitted wrongdoing in exchange for lesser punishment, prosecutors say, while others have denied involvement and await trial.
Write to Will Connors at william.connors@wsj.com and Luciana Magalhaes atLuciana.Magalhaes@dowjones.com
