Brazil Olympic security director accused of fraud

Brazil Olympic security director accused of fraud

Published Jan. 13, 2012 11:12 a.m. ET

Brazil's public prosecutor's office says the security director for the 2016 Olympic Games allegedly committed fraud when he occupied the same position during the Pan American Games held in Rio de Janeiro four years ago.

Prosecutors' spokeswoman Paula Amaral says that Luiz Fernando Correa spent 40 million reals ($20 million) for the purchase of security equipment in 2007 and a later investigation showed it was worth 22 million reals ($11 million).

''He overbilled the government by 80 percent,'' she said.

She says the prosecutor's office ordered the investigation because the purchase was made without comparing market prices, which is required by law for any government acquisition made without a bidding process.