Brazil’s federal police on Friday recommended that prosecutors file charges against former President Luiz Inácio Lula da Silva and his wife, Marisa Leticia, for money laundering and corruption.

Police allege Mr. and Mrs. da Silva illegally benefited from renovation work that construction company OAS SA carried out on a luxury beach apartment that was allegedly intended for the two. Mr. da Silva allegedly received other benefits from the builder, according to police, who calculated the total value of the renovations and other benefits at 2.4 million reais ($739,953).

Mr. da Silva and his wife have both denied that they own the apartment, saying they paid a deposit to buy a different unit in the same building but later decided to ask for their deposit back. Their lawyer, Cristiano Zanin Martins, said Friday there is “no evidence” linking the couple to the luxury property. Mr. Martins denied the allegations.

An OAS spokesman declined to comment.

Brazilian prosecutors must now decide whether to ask a judge to indict Mr. and Mrs. da Silva. If they choose to do so, a judge would then have to accept the request before the case would move to trial.

 Source:Wall Street Journal