Fraud ring busted at Brasilia development bank

BRASILIA – Brazilian police have arrested 19 suspects on charges of laundering and embezzling US$25 million from city-owned Banco de Brasilia, the prosectors’ office said on Friday.

The suspects include the bank’s former president, Tarcisio Franklin de Moura. Brazil has seen a series of corruption scandals recently, including incidents involving the head of the Senate.Prosecutors believe the bank contracted technology service providers, which then funnelled bank money through a private company and a nonprofit organisation and into the pockets of executives, city attorney Leonardo Bandarra told local media.Among other financial services, the bank makes small loans to poor entrepreneurs to help them improve business and climb out of poverty.Nampa-ReutersBrazil has seen a series of corruption scandals recently, including incidents involving the head of the Senate.Prosecutors believe the bank contracted technology service providers, which then funnelled bank money through a private company and a nonprofit organisation and into the pockets of executives, city attorney Leonardo Bandarra told local media.Among other financial services, the bank makes small loans to poor entrepreneurs to help them improve business and climb out of poverty.Nampa-Reuters