Authorities yesterday raided Gerdau headquarters and other offices in Brazil and summoned Gerdau for questioning as part of the investigation, dubbed "Operation Zealots." The investigation is looking into whether a tax appeals body in Brazil's government was taking money in exchange for reducing or nullifying tax fines and tax assessments imposed on certain companies.

Gerdau SA is suspected of evading R$1.5 billion (US$380 million), according to the Reuters news service. 

In a statement, Gerdau confirmed that police had been at its offices on Thursday and said that it was cooperating with authorities.
The Journal reported that authorities seized computers, documents and mobile phones at the offices.

Arnaldo Malheiros Filho, an attorney representing the company and Gerdau, said that neither had done anything illegal. He also toldThe Journal that an independent auditor hired by Gerdau to look into the allegations found no evidence of illegal activity. 

“There was no tax evasion,” Malheiros said. “The company has everything documented.”