Drug Gang Sells Brazil Gas in Sophisticated Bid to Wash Profits

It looked like just another gas station like thousands across Brazil. But this Shell-branded station outside Sao Paulo was selling gasoline for a few cents a liter less than the competition down the street. Driving to work, a Brazilian lawyer named Julia didn’t think twice before filling up her red Ford Bronco. She quickly became a regular customer.

“I never understood how they could sell the same product for so much cheaper, but my car didn’t have any problems with it,” said Julia. “It makes a huge difference.”

Stations like this one are now in the spotlight after Brazilian police and prosecutors launched a multi-state ...