Former INSS President Alessandro Stefanutto is arrested by the Federal Police for illegal deductions in pensions

Stefanutto was dismissed from his position in April, after being removed from office when the fraud scandal at the agency became public. Investigations revealed a criminal scheme to make irregular deductions from amounts received by retirees and pensioners of the INSS, which were carried out from 2019 to 2024. The embezzlement, according to investigations, could reach R$ 6.3 billion. The former president of the INSS is the target of one of the 10 arrest warrants executed this Thursday, in a new phase of Operation Sem Desconto, launched by the PF in partnership with the Office of the Comptroller General of the Union (CGU). According to TV Globo, the former Minister of Social Security Ahmed Mohamad Oliveira is the target of search and seizure warrants and will be required to use an electronic ankle monitor. Federal Deputy Euclydes Pettersen Neto (Republicanos-MG) and State Deputy Edson Cunha de Araujo (PSB-MA) are also the targets of search and seizure warrants. In total, security forces are executing 63 search warrants and other precautionary measures in the Federal District and in 14 states: Espírito Santo, Goiás, Maranhão, Minas Gerais, Paraíba, Paraná, Pernambuco, Piauí, Rio Grande do Norte, Rio Grande do Sul, Santa Catarina, São Paulo, Sergipe, and Tocantins. The targets are being investigated for crimes such as falsification of data in official systems, criminal organization, social security fraud, active and passive corruption, as well as acts of asset concealment and dilapidation. The case was revealed on April 23, after the first phase of the Federal Police operation. According to investigations, the suspects charged irregular monthly fees, deducted from the benefits of retirees and pensioners, without their authorization. The scheme involved withdrawing money from INSS beneficiaries monthly, as if they had become members of retired associations when, in fact, they had not joined or authorized the deductions. According to CGU Minister Vinícius de Carvalho, the associations involved in the scheme claimed to provide services such as legal assistance for retirees and offered discounts on gym memberships and health plans, for example, but did not have the infrastructure. In total, 11 entities were subject to judicial measures. Contracts of retirees and pensioners with these entities were suspended, according to the CGU minister. Alessandro Stefanutto is affiliated with the PDT and was appointed to lead the social security agency by ally and Minister Carlos Lupi (Social Security) in July 2023. At the time of his appointment, he was affiliated with the PSB, but migrated to the PDT in January this year. According to the resume posted on the INSS website, Stefanutto graduated in Law from Mackenzie University and holds a master’s degree in Management and Social Security Systems from the University of Alcalá (Spain). Before being appointed president of the INSS, he was Director of Budget, Finance, and Logistics at the agency. He also served as a special federal prosecutor for the INSS from 2011 to 2017. Before that, he worked at the São Paulo Court of Justice (TJ-SP) and was a technician at the Federal Revenue Service.