Brazil’s Former Finance Minister Antonio Palocci Arrested as Part of Corruption Investigation

Latest: Corruption and Money Laundering.

Former Chief of Staff and Finance Minister Antonio Palocci,
shown in 2011, was arrested on Monday as part of the
anticorruption investigation known as Operation Car Wash. PHOTO: AGENCE FRANCE-PRESSE/GETTY IMAGES

SÃO PAULO—Brazilian police arrested former Chief of Staff and Finance Minister Antonio Palocci on Monday, as the country’s sprawling anticorruption investigation expands to more high officials from the administrations of ex-President Luiz Inácio Lula da Silva and his successor, Dilma Rousseff.

Mr. Palocci was arrested in his home in São Paulo on allegations that he favored construction company Odebrecht SA in contracts with state-run oil company Petróleo Brasileiro SA, and that he and members of his political party benefited financially from those actions, according to a statement from the Federal Police.

Prosecutors alleged Monday that Odebrecht paid a total of 128 million reais ($39.6 million) in bribes from 2008 through 2013 to members of Mr. da Silva’s and Ms. Rousseff’s Workers’ Party, including to Mr. Palocci...

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