Operation Car Wash (Operacao Lava Jato), a Brazilian federal police investigation launched in 2014, uncovered a vast corruption scheme in which Petrobras executives colluded with construction companies and politicians to overbill contracts and funnel billions of dollars in kickbacks to executives and political parties. The scandal led to dozens of convictions including a former Petrobras CEO, contributed to the impeachment of President Dilma Rousseff and imprisonment of former President Luiz Inacio Lula da Silva (later overturned), and cost Petrobras tens of billions of dollars in market value and settlements. This description is adapted from Wikipedia contributors under CC BY-SA 4.0; changes were made. https://creativecommons.org/licenses/by-sa/4.0/
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The Operation Car Wash scandal forced Petrobras to release audited financial statements admitting nearly 17 billion dollars in write downs tied to graft and overvalued assets, making it a standard accounting practice case in financial statement fraud and auditor failure.
Source Wikipedia, Operation Car Wash
Source Wikipedia, Operation Car Wash
Companies Involved
Source Wikipedia, Operation Car Wash
Sources
1. Wikipedia, Operation Car Wash
WikipediaLead section, opening paragraph
Beginning in March 2014 as the investigation of a small car wash in Brasilia over money laundering, the proceedings uncovered a massive corruption scheme in the Brazilian federal government, particularly in state-owned enterprises.
- Associated With: Petrobras
Associated With: Accounting, Effect on Petrobras section
Petrobras delayed reporting its annual financial results for 2014, and in April 2015 released "audited financial statements" showing $2.1 billion in bribes and a total of almost $17 billion in write-downs due to graft and overvalued assets, which the company characterized as a "conservative" estimate.
- Companies Involved: Petrobras
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