Brazilian authorities launched ‘Operação Distrato’ on 15 April, executing 38 search warrants across six cities in São Paulo and Paraná states. The probe, led by a task force of tax auditors, prosecutors and police, targets a network of law firms and consultancies accused of selling falsified ICMS tax credits to companies, causing an estimated R$3.8 billion (US$760 million) in losses to the state of São Paulo. The scheme exploited the non-cumulative nature of the goods and services tax, where firms can offset tax paid on inputs against tax due on sales. Investigators say the suspects fabricated credits from defunct or non-existent companies, forged official approval documents, and even hired actors to pose as tax auditors in video conferences with clients.

According to São Paulo’s tax authority (Sefaz-SP), the fraud came to light after data cross-checking revealed that numerous companies had suddenly reduced their tax payments to negligible amounts. One firm, which previously paid around R$80 million, remitted only R$8 million after using the irregular credits. The operation also targeted Nelson Wilians, a high-profile lawyer with over 1.4 million Instagram followers, whose firm is alleged to have partnered with another office that managed the scheme. Wilians’ firm stated it had ended the partnership after identifying inconsistencies and alerted clients. The state prosecutor’s office indicated that similar frauds may have occurred in other Brazilian states, and further phases of the investigation are expected.

In Mexico, the Mexican Institute of Industrial Property (IMPI) and the National Customs Agency (ANAM) seized 28,800 pieces of counterfeit sportswear at the Lázaro Cárdenas port, Michoacán, at the request of Adidas. The goods, valued at 2.88 million pesos, were imported by a company named Janjo Shipping and are suspected of infringing multiple Adidas trademarks. IMPI’s director general, Vidal Llerenas Morales, described the action as part of ‘Operation Cleanup,’ a joint initiative with the Economy Ministry to prevent the entry and distribution of products that harm registered brands and the national economy. The merchandise remains in custody pending a legal determination.

In Argentina, a court in Salta ordered six simultaneous raids and seized 12 vehicles, electronic devices, and a passport in an investigation into a suspected Ponzi scheme. The probe, led by prosecutor Ana Inés Salinas Odorisio, follows complaints from at least five individuals who say they lost large sums after investing in firms Gerala Foa S.R.L. and Naireibis S.R.L. The companies promised monthly dollar returns from vehicle purchases and rentals, but payments ceased, and some investors received worthless guarantees or cars with liens. Investigators say the scheme exhibits classic Ponzi characteristics, with early investors paid from new participants’ funds. The suspects, who frequently travelled to Brazil, Chile, and Portugal, face potential arrest and travel bans.