Grupo Refit Exposed: How Brazil’s Biggest Tax Evader Operated a $26 Billion Fraud Scheme, According to Federal Revenue
- The Anatomy of a Billion-Dollar Fraud
- Who Is Grupo Refit?
- The Financial Machinery Behind the Fraud
- Aftermath of Operation Carbono Oculto
- Current Status and Asset Recovery
- Frequently Asked Questions
In a shocking revelation, Brazil's Federal Revenue has uncovered Grupo Refit's elaborate tax evasion and money laundering operation worth R$26 billion (US$5.2 billion). The scheme involved shell companies, offshore accounts, and sophisticated financial maneuvers in the fuel sector. This article breaks down the mechanics of one of Brazil's most audacious financial crimes and its impact on the nation's economy.
The Anatomy of a Billion-Dollar Fraud
Grupo Refit, the primary target of Operation Poço de Lobato launched on November 27, 2025, stands accused of orchestrating Brazil's largest tax evasion scheme through an intricate web of financial deception. Federal investigators reveal the group moved over R$70 billion (US$14 billion) in just one year using a network of shell companies, investment funds, and offshore entities - including an export company based outside Brazil specifically designed to hide profits.
The scheme's sophistication is staggering. According to São Paulo's Finance Department (Sefaz/SP), Refit-connected companies positioned themselves as intermediaries to avoid paying ICMS (state value-added tax) owed to São Paulo. Importers acting as front persons acquired naphtha, hydrocarbons, and diesel from abroad using funds from group-linked formulators and distributors. Between 2020-2025 alone, the group imported over R$32 billion (US$6.4 billion) in fuel products.
Who Is Grupo Refit?
With its headquarters in Rio de Janeiro, Grupo Refit operates nationwide through what appears on the surface as a legitimate fuel business. The company's refinery spans 600,000 square meters with storage capacity exceeding 200 million liters. Founded in 1954 during Brazil's nationalist "O Petróleo é Nosso" (The Oil is Ours) campaign, the former Manguinhos Refinery was Rio's first private refinery, built in just 255 days.
After ceasing operations in 2005, the refinery was sold to Grupo Andrade Magro, underwent restructuring, and resumed operations in 2010 before rebranding as Refit in 2017. However, beneath this legitimate facade, authorities uncovered a different reality during Operation Cadeia de Carbono, where four ships carrying 180 million liters of fuel were detained, and the refinery was shut down by Brazil's National Petroleum Agency (ANP).
The Financial Machinery Behind the Fraud
The Federal Revenue's investigation uncovered a financial labyrinth designed to obscure money trails. A central financial operator maintained 47 bank accounts tied to group companies. Illicit funds were reinvested through 17 identified investment funds with combined assets of R$8 billion (US$1.6 billion), mostly closed-end funds with single investors - typically other funds within the network.
International operations proved particularly brazen. The group exploited U.S. corporate structures allowing anonymous, tax-free entities that don't generate American income. Through a Houston-based export company, Refit imported over R$12.5 billion (US$2.5 billion) in fuels between 2020-2025. Authorities have identified more than 15 U.S. companies funneling money back to Brazil for real estate acquisitions and equity purchases.
Aftermath of Operation Carbono Oculto
Following 2024's Operation Carbono Oculto, which exposed a billion-dollar fuel fraud scheme linked to the PCC criminal organization, Refit dramatically restructured its financial operations. The group abandoned its 2018-era model, replacing key operators who previously handled R$500 million (US$100 million) with new entities moving over R$72 billion (US$14.4 billion) post-2024.
Financial institutions implicated include publicly traded Reag Investimentos (REAG3), one of Brazil's largest independent asset managers, and BK Bank, a major payment institution. Reag stated it was "fully cooperating with authorities," while BK Bank's involvement remains under investigation.
Current Status and Asset Recovery
Authorities have already frozen over R$10.2 billion (US$2 billion) in assets, including real estate and vehicles, through Brazil's Attorney General's Office (PGFN) and São Paulo's Interinstitutional Committee for Asset Recovery (Cira/SP). The scale of recovery operations underscores the scheme's magnitude and the government's determination to reclaim lost revenue.
This case represents a watershed moment for Brazil's fight against financial crime, exposing vulnerabilities in both corporate structures and cross-border financial oversight. As investigations continue, the Refit case may prompt significant reforms in how Brazil monitors complex financial transactions in the energy sector.
Frequently Asked Questions
How much did Grupo Refit allegedly evade in taxes?
According to Brazil's Federal Revenue, Grupo Refit's tax evasion scheme caused an estimated R$26 billion (US$5.2 billion) in losses to public coffers.
What methods did Refit use to hide its activities?
The group employed shell companies, offshore accounts, investment funds, and international entities - including a Houston-based export company - to obscure money trails and avoid taxation.
What consequences has Refit faced so far?
Authorities have frozen over R$10.2 billion in assets, and the refinery was interdicted by Brazil's National Petroleum Agency following Operation Cadeia de Carbono.
How did authorities discover the scheme?
The fraud was uncovered through coordinated investigations including Operations Carbono Oculto and Poço de Lobato, involving multiple government agencies analyzing financial records and fuel transactions.
Are other companies involved?
Yes, financial institutions including Reag Investimentos (REAG3) and BK Bank have been named in investigations, with Reag stating it's cooperating with authorities.
