SAO PAULO POLICE ACCUSED OF CRIMES AGAINST PCC LEADERS

UNCLAS SAO PAULO 000228 SENSITIVE SIPDIS STATE FOR WHA/BSC, INL, AND DRL STATE ALSO FOR DS/IP/WHA, DS/IP/ITA, DS/T/ATA, DS/DSS/ITA NSC FOR TOMASULO SOUTHCOM ALSO FOR POLAD USAID FOR LAC/AA TAGS: PGOV PHUM KCRM SNAR ASEC BR SUBJECT: SAO PAULO POLICE ACCUSED OF CRIMES AGAINST PCC LEADERS REF: 06 SP 573 and previous ¶1. (SBU) Summary: As the second anniversary of organized criminal violence in Sao Paulo approaches (reftels),an investigation has uncovered evidence of possible civil police misconduct related to the First Capital Command (PCC) criminal gang. Two investigators have been accused of illicit wiretapping, kidnapping, and extortion, and a senior state public security official has submitted his resignation. While the administration of Governor Jose Serra has received generally high marks for its tough anti-crime stance, experts have expressed concern that the PCC continues to operate on the streets and in the state penitentiaries and that another outbreak of violence is only a matter of time. End Summary. ¶2. (U) On May 14, 2006, the First Capital Command (PCC) launched a series of attacks against police and simultaneous uprisings in 71 state prisons. The apparent trigger was an attempt by state corrections officials to disrupt PCC operations in the prisons by moving the group's incarcerated leaders to isolated and secure facilities. PCC members on furlough for the weekend attacked police stations, burned buses and buildings, and shot officers on duty. (Note: It is standard practice across Brazil to furlough prisoners on Mothers' Day weekend and a few other holidays. End note.) Police responded with additional force and more firepower against the criminals. The wave of violence in the streets lasted the better part of a week and resulted in more than 100 dead, including more than 40 law enforcement officials. There were occasional small flare-ups over the next few months. ¶3. (U) As the second anniversary of the violence approaches, an investigation has uncovered evidence of misconduct by police responsible for combating the gang. On April 30, a group of prosecutors in Guarulhos (greater Sao Paulo),the Special Group for Action and Repression of Organized Crime (GAERCO),ordered the arrest of Civil Police investigators Augusto Pena and Jose Roberto Araujo. The two are suspected of being the leaders of a gang that specializes in the blackmail and extortion of PCC members and their families. According to the accusations, Pena and Araujo used official information they had accessed through wiretapped telephone conversations to extort money from the PCC members. In the most serious accusation, both of the investigators and their team are considered responsible for the 2005 kidnapping of the stepson of PCC leader Marcos Willians Herbas Camacho, aka "Marcola." According to the prosecutors, Marcola paid 300,000 Reals (approximately USD 140,000) for the release of his stepson. The investigation also found that the gang used forged documents to request judicial orders to conduct wiretaps of PCC members and then used the information obtained for blackmail, extortion, robbery, and bribery. ¶4. (U) On May 6, Deputy State Secretary for Public Security Lauro Malheiros Neto submitted his resignation to the Governor following allegations that he used his influence to help Augusto Pena get desirable assignments and also received money from Pena's illicit activities. Malheiros denied wrongdoing but said that he couldn't carry out his functions under a cloud of suspicion. The investigation continues. ¶5. (SBU) Comment: Allegations of police misconduct are not uncommon in Sao Paulo. Not long ago, Governor Jose Serra was forced to acknowledge the existence of death squads in the state military police. The notion that some members of the police might be playing dirty with the gang is troubling but not surprising. Where the current investigation will lead remains to be seen. The PCC has been keeping a relatively low profile lately but remains a formidable force in the state. Some security experts believe it is only a matter of time, and the right (or wrong) provocation, before the group unleashes another wave of violence. End Comment. ¶6. (U) This cable was coordinated with and cleared by Embassy Brasilia. WHITE