Brazil probes jewelry sales to ex-governor accused of money laundering

Brazilian authorities are investigating more than 2 million U.S. dollars in jewelry sales to the former governor of Rio de Janeiro state, Sergio Cabral, and his wife, Adriana Ancelmo, who stand accused of money laundering and other financial crimes, local media reported on Monday.

The two went on a jewelry-buying binge, spending nearly 7 million reals (2.12 million U.S. dollars) on diamond earrings, high-end watches and other fine accessories, all paid for in cash, prosecutors say.

Cabral has denied buying that much jewelry, but authorities say they have insurance and other documents for at least 37 pieces amounting to 4.8 million reals (1.45 million U.S. dollars).

According to news website G1, the police are especially intrigued by the disappearance of some of the gems. Out of 131 jewelry items purchased by the couple, 40 were seized as evidence from the governor's home and 11 were found at the home of Cabral's assistant Carlos Miranda. Some 80 pieces remain unaccounted for.

The police are investigating the jewelry stores that sold the items to determine if they took part in the money laundering scheme. In most cases, the stores did not officially register the sales.

The police believe Cabral and Ancelmo laundered millions received in bribes over the years by purchasing jewelry.

Cabral reportedly received monthly kickbacks amounting to 800,000 reals (242,000 U.S. dollars) from two construction companies.

Cabral, who served two consecutive terms (2007-2014), was arrested two weeks ago. Enditem