VZCZCXRO9554
PP RUEHRG
DE RUEHSO #0228 1300941
ZNR UUUUU ZZH
P 090941Z MAY 08
FM AMCONSUL SAO PAULO
TO RUEHC/SECSTATE WASHDC PRIORITY 8193
INFO RUEHBR/AMEMBASSY BRASILIA 9322
RUEHAC/AMEMBASSY ASUNCION 3380
RUEHBU/AMEMBASSY BUENOS AIRES 3132
RUEHMN/AMEMBASSY MONTEVIDEO 2684
RUEHLP/AMEMBASSY LA PAZ 3791
RUEHCV/AMEMBASSY CARACAS 0727
RUEHSG/AMEMBASSY SANTIAGO 2380
RUEHRG/AMCONSUL RECIFE 4090
RUEHRI/AMCONSUL RIO DE JANEIRO 8702
RHEHNSC/NSC WASHDC
RHMFISS/CDR USSOUTHCOM MIAMI FL
RUEAWJC/DEPT OF JUSTICE WASHDC
RHMFIUU/HOMELAND SECURITY CENTER WASHDC
RUEABND/DRUG ENFORCEMENT ADMIN HQ WASHDC

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