Former tax auditor Arnaldo Pereira arrested in Bahia after faking death to escape 18-year sentence for ISS mafia

ex auditor

ex auditor – Foto: Reprodução/TV Globo

Police authorities arrested Arnaldo Augusto Pereira, a former tax auditor from São Paulo’s City Hall, on Wednesday, October 15, 2025, in Mucuri, southern Bahia. He staged his own death to avoid serving an 18-year sentence for involvement in the ISS mafia, a corruption scheme uncovered in 2013. A joint operation involving police forces from São Paulo, Bahia, and Espírito Santo dismantled the ruse after months of surveillance.

Pereira confessed to paying over $40,000 for a fake death certificate and altered identity documents. The deception allowed him to live under a false name in the condominium where he was captured. The judiciary had recorded his supposed death on July 10, 2025, in Salvador, temporarily halting legal actions against him.

Investigators identified inconsistencies in civil registries during routine checks on fugitives. Pereira created online profiles in his family members’ names to maintain the illusion of his death. His arrest occurred as he left a residence, with items confirming the fraud seized.

Joint operation reveals capture details

Police forces from three states coordinated the operation since July 2025. Teams monitored addresses linked to Pereira in Bahia for two weeks. His exact location was pinpointed through intelligence data cross-referenced by São Paulo’s Public Prosecutor’s Office.

Agents from Bahia’s Rondesp Extreme South supported the approach in Mucuri. Pereira did not resist arrest and was immediately taken for questioning. False documents found in his possession included an ID card and residential proof.

The Gaeco-South, an anti-organized crime unit, led the operation’s final phase. Preliminary information suggests Pereira received logistical support from unidentified contacts. He was transferred to São Paulo the day after his arrest.

ISS mafia scheme and conviction history

The ISS mafia operated between 2007 and 2013 at São Paulo’s City Hall, diverting over $500 million in bribes. Tax auditors demanded illegal payments from construction companies to reduce municipal taxes. The scheme involved dozens of officials and entrepreneurs, with investigations launched by the Public Prosecutor’s Office.

Pereira, a former subsecretary of revenue, facilitated irregular permit approvals. In 2019, he was convicted of extortion and money laundering, receiving an 18-year sentence. A 2021 plea deal was voided due to proven falsehoods, increasing his total sentence to over 45 years across multiple cases.

Authorities estimate the group collected $1.1 million from a single development in Santo André. Pereira’s prior arrests occurred in 2019 and 2021, but he fled after an STJ ruling in August 2025. The case has reopened probes into flaws in death registries.

  • Key charges: extortion, active and passive corruption, money laundering.
  • Total diverted amount: over $500 million in bribes.
  • Identified individuals involved: approximately 50, including auditors and developers.
  • Fiscal impact: billions in losses to São Paulo’s public coffers over the years.
ex-auditor-fiscal Arnaldo Augusto Pereira
ex-auditor-fiscal Arnaldo Augusto Pereira – Foto: Reprodução/TV Globo

Document fraud and Pereira’s confession

Pereira obtained the fake death certificate through intermediaries with criminal records. The document claimed death by natural causes at a residence in Salvador’s Liberdade neighborhood. He used it to transfer assets to relatives and halt criminal proceedings.

During questioning, the ex-auditor admitted creating emails in his wife’s name to simulate post-death communications. “My wife doesn’t know I’m dead,” he told investigators. His family, residing in another state, was unaware of the deception.

Bahia’s Regional Medical Council is investigating the doctor who issued the certificate. Cartographic records showed irregular signatures on the death document. Pereira planned to sustain the ruse indefinitely, working informally in the region.

Seized cell phones and computers contained digital evidence of the fraud. Forensic analysis confirmed edited photos and file metadata. The total cost of the falsification operation exceeded $40,000, paid in installments.

Surveillance and inconsistencies leading to downfall

Intelligence teams detected unusual bank transactions in accounts linked to Pereira. Despite the recorded death, activities continued in Bahia addresses. Facial recognition systems accelerated his location.

Pereira attended a local parish, where he was recorded at recent ceremonies. Condominium residents reported a “new neighbor” with no local history. Anonymous tips complemented police data.

The operation prevented further escapes by isolating access to the Mucuri property. Pereira reportedly planned to move to Espírito Santo. His preventive detention was converted to definitive by the presiding judge.

Immediate judicial consequences

Pereira faces additional charges for procedural fraud and use of false documents, potentially adding up to 12 years to his sentence. Transferred to a São Paulo prison, he awaits custody hearings.

The Public Prosecutor’s Office requested the freezing of his remaining assets. Family members were questioned as witnesses, with no evidence of complicity. The case is part of a task force against municipal corruption.

Investigations continue to identify accomplices in the falsification. Authorities plan public hearings on vulnerabilities in civil registries. Pereira’s voided plea deal will be reassessed in a new process.

Simulation details revealed in interrogation

For months, Pereira maintained a low-profile routine in Mucuri, avoiding São Paulo contacts. He altered his physical appearance and used rented vehicles for travel. The ruse included fake social media posts managed by third parties.

Confessions detailed contacts with forgers in Salvador, who charged fees for “complete concealment services.” Pereira received funds from offshore accounts for sustenance.

His wife, notified by authorities, confirmed no communication since July. She lived in São Paulo with their children, managing transferred assets. Psychologists are assessing the family’s emotional impact, with no public details.

Authorities report the deception lasted exactly three months until the arrest. Recovered digital evidence includes aborted escape plans. The case underscores the need for stricter protocols in death certificate issuance.

logomixvale 1 Former tax auditor Arnaldo Pereira arrested in Bahia after faking death to escape 18-year sentence for ISS mafia