Brazilian police cracked down on a sprawling criminal network that defrauded motorists at petrol pumps and concealed billions of dollars in illicit earnings in cahoots with financial companies.

More than 1,400 police officers were deployed to execute hundreds of warrants countrywide, President Luiz da Silva hailed the largest response from the Brazilian state to organized crime in the country’s history.

Prosecutors said the group allegedly laundered money for the First Capital Command, PCC, one of the country's most powerful gangs engaged in cocaine trafficking from South America to Europe.

According to the Federal Revenue Service, RFB, the network is alleged to have hidden ill-gotten gains of about $9.6 billion in investment funds and fintech digital companies in four years to 2024.

It also controlled four refineries and allegedly diluted fuel products to increase yield and cheated clients with pumps that supplied less fuel than indicated.

According to Officials, irregularities were identified at more than 1,000 gas stations in ten of Brazil's 26 states, according to officials.

The group is alleged to have controlled elements of fuel supply all the way from import, production, distribution and marketing to the end consumer, and had more than 1,000 fuel delivery trucks of its own.

The statement added that investigations indicates that the sophisticated scheme devised by the criminal organization, by laundering the proceeds of crime, generated significant profits in the fuel production chain.

Meanwhile, the operation was carried out in a dozen states including Rio de Janeiro and Sao Paulo, the South American giant's financial hub.

In the first hours, police arrested five people and seized 1,500 vehicles, 192 properties, two boats and more than $55,000 in cash.

Brazilian police released images of a mass deployment of officers in Sao Paolo's Faria Lima Avenue, where many financial institutions are headquartered.

According to Lula, the investigation had allowed for tracking the entire chain and targeting the financial core that sustains the practices.