Jersey returns seized funds connected to one of the biggest corruption scandals in modern history.

Jersey authorities are handing back more than £725,000 linked to one of the biggest corruption scandals in modern history after the Royal Court ruled the money represented the proceeds of bribery tied to a Brazilian politician.

The Royal Court ordered the forfeiture of

• £725,783 held in Jersey bank accounts connected to Brazilian national Expedito Machado.

Jersey's Attorney General, Matthew Jowitt KC,

• Issued a forfeiture notice under Article 10 (1) of the Forfeiture of Assets (Civil Proceedings) (Jersey) Law 2018 seeking forfeiture of the £725,783 deposited into Jersey bank accounts, and on 1 May 2026, the Royal Court granted the Attorney General's application to forfeit the tainted funds.
• Mr Jowitt said: 
• "ECCU and our Mutual Legal Assistance Team (with support from the Jersey Financial Intelligence Unit) have worked in close partnership with the Advocacia-Geral da União and the Swiss Public Prosecutor to recover tainted property on behalf of the people of Brazil.
• The Royal Court's order concludes a complex and long-running asset forfeiture investigation by ECCU. 
• This is further evidence that the 2018 Forfeiture Law is a vital tool in recovering the proceeds of corruption and restoring that money to victims of international financial crime."

According to Jersey's Economic Crime and Confiscation Unit (ECCU),

• The money originated from bribes paid to Machado's father, José Sergio de Oliveira Machado, a former chief executive of Brazilian state oil transport company Transpetro.
• Investigators say international shipping and shipbuilding firms paid tens of millions of dollars in bribes to secure lucrative contracts with the company.
• Some of that money was allegedly funnelled through Switzerland before being routed into Jersey trust structures and companies that were then used to purchase UK property.

The Royal Court found

• That the funds held in Jersey were "tainted" by criminal conduct and ordered their forfeiture under Jersey's civil asset recovery laws.
• The money will now be returned to Brazil after Jersey deducts the costs of recovering it.

The money

• It's linked to large-scale corruption uncovered by Brazilian authorities in the Operação Lava Jato (Operation Car Wash) investigation.

WHAT WAS OPERATION CAR WASH?

• Operation Car Wash – known in Portuguese as "Operação Lava Jato" – was a massive anti-corruption investigation launched in Brazil in 2014.
• It began as an inquiry into money laundering at a car wash and petrol station in Brasília, which is why the operation is named.
• But investigators soon uncovered a far-reaching bribery network centred on Brazil's largest oil and gas company, Petrobras. They uncovered illegal payments of more than $5 billion to company executives and political parties.
• Executives at Petrobras and its subsidiaries were accused of accepting kickbacks from construction, engineering and shipping firms in return for inflated contracts.
• Billionaires were jailed, a president was dragged into court, and the reputations of some of the world's biggest companies were damaged.
• Those implicated included Expedito's father, former politician José Sergio de Oliveira Machado.
• He received over US $40 million in bribes while working at Petrobras.
• The payments were made by Brazilian, Greek, German, and Norwegian companies to secure shipbuilding and other shipping services contracts.
• At its peak, Operation Car Wash was regarded as the largest corruption investigation in Brazilian history.
• The investigation exposed how global financial systems could be used to move and hide illicit wealth.
• Funds linked to the scheme travelled through multiple jurisdictions, including Switzerland, offshore finance centres and property markets abroad.
• That international dimension meant authorities in different countries had to cooperate through mutual legal assistance treaties and cross-border financial investigations.

HOW DID JERSEY BECOME INVOLVED?

• Expedito laundered some of the bribe money that was paid to his father between 2007 and 2013 through a complex structure that involved Jersey trusts.
• They were first paid in Switzerland, where the funds would be distributed to other Swiss accounts to disguise them as legitimate commercial bank transfers.
• Four Jersey trusts, funded by bribe monies transferred from Switzerland, were used in the scheme, and the proceeds were used to buy property in the UK.
• The Economic Crime and Confiscation Unit of Jersey's Law Officers' Department demonstrated that the money used to acquire these properties, held by the underlying companies of Jersey trusts, originated from payments received abroad as bribes, which were first deposited in Switzerland.
• While the Jersey court did not make any findings, Expedito Machado pleaded guilty to money-laundering offences in Brazil and Switzerland and cooperated with both authorities to identify the proceeds of crime.
• He also cooperated with the proceedings in Jersey by providing the Attorney General with an affidavit confirming the underlying facts.

WHAT WILL HAPPEN TO THE MONEY NOW?

• Now that the forfeiture totalling £725,783 has been granted, the Attorney General will liaise with Brazilian authorities to return the funds to Brazil, subject to the costs incurred by the Law Officers' Department in recovering them.
• Attorney General Matthew Jowitt KC said: "ECCU and our Mutual Legal Assistance Team (with support from the Jersey Financial Intelligence Unit) have worked in close partnership with the Advocacia-Geral da União and the Swiss Public Prosecutor to recover tainted property on behalf of the people of Brazil.
• "The Royal Court's order concludes a complex and long-running asset forfeiture investigation by ECCU.
• "This is further evidence that the 2018 Forfeiture Law is a vital tool in recovering the proceeds of corruption and restoring that money to victims of international financial crime."

SOURCE

Sources  attribute the following statements to the above sources:

• £725,783 forfeiture and Royal Court order
• Connection to Expedito Machado and Jersey trusts
• Link to father José Sérgio Machado (ex‑Transpetro CEO)
• Bribery linked to Petrobras / Lava Jato scandal
• Use of Switzerland → Jersey → UK property structures
• ECCU investigation and civil asset recovery framework
• Repatriation of funds to Brazil after costs

Core Jersey case (primary reporting/analysis)

• https://www.bailiwickexpress.com/news/insight-why-is-jersey-returning-over-725000-in-criminal-funds-to-brazil/
• https://www.comsuregroup.com/news/jersey-seizes-725k-in-brazilian-bribe-millions-will-the-banks-that-handled-the-funds-face-action/ [comsuregroup.com]

International / supporting news coverage

• https://www.aol.com/articles/laundered-bribe-money-returned-brazil-153654000.html [aol.com]
• https://www.folhadestra.com/dinheiro-de-propina-da-petrobras-e-liberado-e-r-4-milhoes-devem-ser-devolvidos-ao-brasil/ [folhadestra.com]

Official/legal context (referenced in reporting)

• https://www.lawofficers.je/publications/news/forfeiture-of-over-725-000/ [comsuregroup.com]
• Jersey Law Officers' Department – LinkedIn post (official statement by the Economic Crime and Confiscation Unit, 11-12 May 2026) https://je.linkedin.com/company/law-officers-department (Scroll to the postdated around 11 May 2026 quoting Attorney General Matthew Jowitt KC)
• https://www.lawofficers.je/publications/news/forfeiture-of-over-725-000/