Former Brazilian President Jair Bolsonaro allegedly benefitted from an illegal scheme, embezzling $1.2 million worth of jewelry and other luxury items received as gifts, a probe by the police concluded on Monday.

The police report, submitted to the Supreme Federal Court (STF), revealed that government officials had allegedly "acted to divert" multiple valuable gifts from foreign governments abroad, amounting to a total of $1.22 million, "with the aim of... the illicit enrichment of the then-president."

The jewelry included diamond-encrusted Rolex and Patek Phillipe watches, a necklace, rings, and cufflinks, according to the detailed 500-page report, detailing that some of the items were gifted to Bolsonaro's government staffers on his behalf during international visits. 

STF judge Alexandr de Moraes has given prosecutors 15 days to decide if Bolsonaro will be formally indicted, following the attainment of the jewelry cash sales "without using the formal banking system."

Paulo Cunha, Bolsonaro's lawyer, wrote on X that the heads of state "have no direct or indirect influence" on what happens to official gifts.

The right-wing politician denied any wrongdoing, claiming he was a victim of judicial persecution under President Luis Inacio Lula da Silva's leftist government.

The former president is also standing trial for allegedly falsifying COVID-19 documents and conspiring to plot a coup in January 2023, where thousands of his supporters called for Lula's removal from power through military force by storming Brazil's Congress, Supreme Court, and presidential offices.

Bolsonaro's case began in October 2021, after customs seized an undeclared set of diamond jewelry from Saudi Arabia.

Saudi diamonds scandal 

According to one of Brazil's conservative publications, in October 2021, Sao Paulo airport customs authorities intercepted a $3.2 million set of diamond earrings that a military official traveling with one of Bolsonaro's ministers attempted to bring in his backpack without registering. The Bolsonaro administration attempted, but failed, to retrieve the jewelry, which was allegedly a gift from Saudi Arabia to the then-first lady, Michelle Bolsonaro.

Then in September, Bolsonaro's former personal secretary allegedly informed authorities that he turned over tens of thousands of dollars to his former boss after selling two costly watches received as official presents by Brazil's ex-president.

Lt. Col Mauro Cid Barbosa, Bolsonaro's aide-de-camp throughout his 2019-23 administration, was freed from police custody after reaching a plea agreement.

According to the deal, Cid had to submit information about a number of suspected crimes committed under Bolsonaro's government, including an attempted coup plan and a scandal involving the alleged misuse of expensive foreign gifts.

Shortly before his release, Bolsonaro's former right-hand man allegedly submitted a statement to Brazilian federal authorities in which he confessed to selling a Rolex and Patek Philippe watches for $68,000 before giving the money to Bolsonaro in cash.

Bolsonaro's indictment

According to a source familiar with the situation, Bolsonaro was charged by Federal Police with money laundering and criminal association to undisclosed diamonds that the far-right leader had received from Saudi Arabia while in office.

The indictment was confirmed by a second source, however, they did not specify the exact crimes.

Last year in August, a Brazilian Supreme Court judge gave police permission to search the bank accounts of Jair and Michelle Bolsonaro, who are accused of embezzlement while they were in office.

The controversy involves lavish gifts from Saudi Arabia and Bahrain and first made news three months after Bolsonaro stepped down following his loss of the election in October 2022.