Brazil police target former Rio governor Castro in new investigation, say sources

RIO DE JANEIRO, Aug 14 - Brazil's federal police on Friday carried out search warrants targeting former Rio de Janeiro Governor Claudio Castro, two sources familiar with the investigation told Reuters.

Castro's lawyer said in a statement to Reuters that authorities had not searched his residence.

In a statement that did not name suspects, Brazil's federal police said it was investigating alleged fraudulent and reckless management, money laundering, tax evasion, capital flight, market manipulation and crimes against the economic order involving fuel marketing.

The probe is examining the alleged irregular issuance of environmental licenses for the refinery, in disregard of guidance from the relevant technical bodies, as well as money laundering tied to the scheme, it added.

The former governor was targeted in another investigation into suspected tax evasion in May, when police ordered privately owned refinery Refit to halt operations.

Castro resigned from office in March. An electoral court barred him from holding office for eight years for abuse of political and economic power, illicit fundraising and other issues in the 2022 general election. REUTERS