In a landmark ruling, Brazil’s federal court has sentenced three individuals connected to the notorious Braiscompany crypto scheme to a combined 171 years in prison. The decision represents one of the country’s harshest penalties ever handed down in a financial fraud case.
Key Operator Gets 128 Years
Joel Ferreira de Souza, identified as the main orchestrator of the fraudulent scheme, received a sentence of 128 years, 5 months, and 28 days. He was convicted on 11 counts of money laundering and was found guilty of managing illegal financial operations through shell companies and unregulated cryptocurrency transactions. Investigators revealed that Joel promised high, unrealistic returns to investors while concealing the scheme’s inner workings.
His actions were deemed central to the multi-layered pyramid operation that raised over R$1.11 billion (approximately $220 million) from nearly 20,000 unsuspecting investors.
Co-Conspirators Also Jailed
Two other individuals received substantial prison terms for their involvement in the scheme.
- Gesana Rayane Silva, who worked as a broker for Braiscompany, was sentenced to 27 years in prison. She played a key role in transporting large amounts of cash and facilitating unlawful financial flows.
- Victor Augusto Veronez de Souza, Joel’s son, received a 15-year sentence for his participation in companies used to launder illicit funds.
The court described the group’s operation as a “parallel financial system,” intentionally designed to hide the origins and movement of investor money.
Massive Fraud and Seizures
Federal Judge Vinicius Costa Vidor presided over the case and noted the structured, premeditated nature of the crimes. He stated that the defendants created a sophisticated web of deception to defraud thousands of investors, leading to enormous financial losses.
As part of the judgment, the court ordered the forfeiture of assets worth R$36 million (approximately $7 million), which will be transferred to the Brazilian government.
Two additional individuals named in the case were acquitted due to a lack of sufficient evidence.
Context: Braiscompany Fallout
This latest ruling follows the earlier extradition of Braiscompany founder Antonio Inacio da Silva Neto and his partner Fabricia Farias Campos from Argentina last year. The duo was previously sentenced to a combined 150 years in prison for leading the fraudulent company.
The downfall of Braiscompany has sent shockwaves through Brazil’s crypto investment community, serving as a cautionary tale about the risks of unregulated investment schemes.
