Brazilian Priest Convicted in Case Involving Hundreds of Donated Electronic Devices

A Brazilian court has convicted a Catholic priest of aggravated embezzlement after nearly 700 electronic devices donated to a healthcare institute were allegedly diverted and sold. The ruling has drawn national attention due to the scale of the case and the broader financial investigations surrounding the cleric.

The Court of Justice of São Paulo found Father Egídio de Carvalho Neto guilty of misappropriating 676 smartphones and tablets that had been donated by Brazil’s Federal Revenue Service to Instituto São José, the organization responsible for overseeing Hospital Padre Zé in João Pessoa, in the northeastern state of Paraíba.

According to the court’s findings, the devices were intended to be auctioned, with proceeds directed toward the institute’s charitable and healthcare initiatives, including the planned purchase of an ambulance. Instead, prosecutors argued that the electronics were sold privately and the funds were not transferred to the institution.

Carvalho Neto was convicted alongside Samuel Cunha Segundo, who previously headed the institute’s technology department. The priest received a sentence of five years and six months under a semi open prison regime, while Segundo was sentenced to four years and seven months under similar conditions. Both were ordered to pay material damages and collective moral damages as part of the judgment.

The devices, estimated to be worth approximately 807,000 Brazilian reais at the time of donation, were collected in May 2023 from Foz do Iguaçu. Investigators later discovered that several boxes containing the most valuable items were empty. Authorities obtained identifying data for the missing smartphones and traced them to individuals involved in their resale.

The case expanded beyond the initial disappearance of the devices. Prosecutors allege that Father Carvalho Neto faces multiple additional criminal charges related to the management of funds linked to Instituto São José and charitable projects connected to the Archdiocese of Paraíba. In total, investigations involve tens of millions of reais reportedly allocated for social services, including food distribution and healthcare programs.

Prosecutors claim that funds were diverted to acquire luxury assets, including real estate and vehicles. Several properties have been identified as connected to the priest, either directly or through associates. Legal proceedings related to these broader accusations remain ongoing.

The priest’s legal counsel has strongly contested the conviction, arguing that the evidence does not demonstrate his direct involvement in the embezzlement of the devices. Defense representatives maintain that he reported the irregularities to authorities and deny that financial records prove personal gain. An appeal is expected before the Court of Justice of Paraíba.

Following the initial investigation in 2023, Carvalho Neto stepped down from his leadership position at the institute and was removed from ecclesiastical functions. He was detained for several months before being released in 2024 to receive medical treatment.

Church officials have not issued detailed public commentary beyond confirming that canonical and civil procedures are being followed. The case continues to unfold within Brazil’s judicial system.