Cisco in Crisco: The Miami Connection

https://i0.wp.com/www.transportes.gov.br/bit/portos/ilheus/po-ilheus02.jpg
The Port of Ilhéus in (unbelievably beautiful) Bahia.

The companies are headquartered in Ilhéus (Bahia), the location of an industrial zone that subsidizes IT imports, provided the components brought in pass through a value-added manufacturing process in Brazil. In practice, however, the products brought in from the USA, according to the tax authority and the feds, never passed through Ilhéus. From the port of Salvador, there were delivered for direct sale. On the American end of the supply chain, among the exporters used in the scheme were MUDE USA and LogCis, both headquartered in Miami.

Material apreendido indica contas bancárias no exterior: The Folha de S. Paulo’s take on the Cisco case this morning. I am just taking as many notes as I can for future reference at this point, so no wagering. It is a bit like asking a bunch of blind men to describe the nature of the elephant to you, as always.

Segundo a investigação, Cisco e Mude, em parceria, montaram uma cadeia de fraude, composta por 14 empresas, sendo 6 nos EUA e 8 no Brasil -incluindo a Mude; a multinacional não faz parte da soma. Em grupo, importavam produtos da Cisco System nos EUA com preços subfaturados ou com descontos para reduzir os impostos pagos no Brasil.

According to the investigation, Cisco (Brasil) and MUDE, in partnership, mounted a “fraud chain” comprising 14 firms, 6 in the USA and 8 in Brazil — including MUDE. The multinational (Cisco Systems) is not included in the list. Working in concert, they imported goods from Cisco Systems USA, understating their value or applying discounts in order to avoid paying taxes in Brazil.

That sounds like Cisco Systems USA, which is said to have benefited from the scheme, is not being accused of actively promoting and operating it. But it is ambiguously worded.

Controles internos das empresas investigadas registram os negócios contabilizados oficialmente e aqueles paralelos. Ao comparar as cifras, pode-se chegar à margem real de lucro obtida mediante fraude.

Internal accounting documents from the firms under investigation register both the official accounting and the parallel books. By comparing the figures, it is possible to calculate the actual profit margin achieved through fraud.

Em meio aos documentos apreendidos, estão extratos de contas bancárias no exterior e ações ao portador de “offshores” -empresas com sede em paraísos fiscais em que a identidade dos donos fica sob sigilo.

Among the documents apprehended are banking records from offshore accounts and bearer bonds of offshore corporations — firms headquartered in fiscal paradises whose owners remain anonymous.

Entre as empresas utilizadas no Brasil, estão a Brastec e a Prime, ambas registradas em nome de laranjas e “offshores”.

Among the firms used in Brazil were Brastec and Prime, both registered in the name of shell corporations and “offshores.”

Elas têm sede em Ilhéus, onde funciona um pólo industrial que dá subsídios a importadoras de material de informática, desde que os componentes trazidos de fora passem por um processo de industrialização no Brasil. Mas, na prática, os produtos trazidos dos EUA, segundo a Receita e a PF, nunca passavam por Ilhéus. Do porto de Salvador, eram levados diretamente para comercialização. Na ponta norte-americana, entre as exportadoras utilizadas no esquema estão, segundo a PF, a Mude USA e a LogCis, com sede em Miami.

The companies are headquartered in Ilhéus (Bahia), the location of an industrial zone that subsidizes IT imports, provided the components brought in pass through a value-added manufacturing process in Brazil. In practice, however, the products brought in from the USA, according to the tax authority and the feds, never passed through Ilhéus. From the port of Salvador, there were delivered for direct sale. On the American end of the supply chain, among the exporters used in the scheme were MUDE USA and LogCis, both headquartered in Miami.

Conforme a investigação, a LogCis seria a abreviatura de Logística da Cisco. A empresa tem sócios brasileiros que estão entre os cinco nacionais que vivem nos EUA e tiveram a prisão decretada pela Justiça.

According to investigations, LogCis stands for Cisco Logistics. The firm has Brazilian partners who are among the five Brazilian citizens living in the USA who have had arrest warrants issued by a Brazilian [federal] court.

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