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Two Brazilian Men Indicted in $74 Million Money Laundering Scheme

Illustration depicting money laundering in a construction context.

News Summary

In Hanahan, SC, Brazilian nationals Jimmy Soares De Oliveira Carvalho and Jose Rivelino Serafim Da Silva were indicted on 17 federal charges for a money laundering operation involving undocumented workers. The scheme reportedly laundered $74 million tied to construction projects and aided contractors in evading tax obligations. Both men were arrested on May 21, and the case is part of a broader investigation into illegal immigration and financial crimes.

Hanahan, SC – Two Brazilian Men Indicted in $74 Million Money Laundering Scheme

Brazilian nationals Jimmy Soares De Oliveira Carvalho, 46, and Jose Rivelino Serafim Da Silva, 51, have been indicted on 17 federal charges related to a large-scale money laundering operation that allegedly involved employing undocumented workers. The indictment details a scheme that facilitated the laundering of approximately $74 million in checks tied to construction projects.

The federal charges carry a maximum penalty of 20 years in prison. Both Carvalho and Da Silva were arrested on May 21 in Hanahan, South Carolina, when law enforcement officials took action against their illegal operations.

Details of the Operation

According to the indictment, the two men allegedly aided construction contractors in obscuring their identities while employing undocumented migrants. They would create multiple limited liability companies (LLCs), which functioned as shell companies for handling cash transactions related to construction projects.

These LLCs received payments from contractors for labor performed primarily by undocumented workers. As part of the scheme, the accused charged contractors a fee of between 3 to 5 percent deducted from the workers’ wages, which streamlined unlicensed cash checking activities. The checks were deposited into bank accounts controlled by Carvalho and Da Silva, who would withdraw cash to pay undocumented workers, often distributing their wages in envelopes.

Avoiding Legal Obligations

The indictment states that the operation was structured to help contractors evade federal tax withholding obligations and avoid workers’ compensation requirements. Investigators believe the laundering operation began as early as January 2017, with the first of the accused companies reportedly established in 2015.

Although eleven construction companies have been generically named in the indictment, it does not disclose how law enforcement became aware of the laundering operation or identify specific clients or contracting firms involved in the illicit activities.

Connection to Local Properties

Some of the LLCs implicated in this case were registered at various properties in the Charleston area, including Channel Family Apartment Homes, the same location where Carvalho and Da Silva were arrested. This connection indicates a potentially localized effort to conceal their activities within the community.

Court Appearances and Ongoing Investigations

A court appearance scheduled for May 21 was postponed for Da Silva due to the absence of a Portuguese-speaking translator, though a bond hearing has since been set for May 23. The case is being prosecuted under an initiative known as “Operation Take Back America,” which focuses on tackling illegal immigration and dismantling transnational criminal organizations involved in similar activities.

Implications of the Charges

The operation orchestrated by Carvalho and Da Silva highlights the intersection of illegal employment practices and complex financial schemes designed to exploit undocumented workers. With this indictment, federal authorities are signaling a continued commitment to rooting out such practices and holding those involved accountable.

As the case proceeds through the legal system, it is likely to draw attention to broader issues of immigration, labor practices in the construction industry, and the challenges of enforcing laws designed to protect the workforce and ensure compliance with federal regulations.