Brazil's Federal Police Arrest Adviser Accused of Diverting R$11 Million From Clients

Overview

• The suspect, identified as Frederico Goz Biagi, was detained on December 4 in an operation that included actions in São Paulo and Rio de Janeiro, with the arrest carried out in Poços de Caldas, Minas Gerais.
• Police say he solicited funds for supposed investments but used clients' money in same-day trades that lost value while issuing fabricated performance reports.
• According to the lead investigator, he targeted wealthy clients through social engineering, including cultivating personal and romantic relationships to secure deposits.
• At least ten people have given statements, and victims were led to pay income taxes on gains that did not exist after receiving falsified rendimento documents.
• He is being charged under laws protecting Brazil's financial system, with potential penalties totaling 10 to 37 years in prison, and investigators continue to seek additional victims and possible collaborators.