Brazil officials have arrested another individual believed to be the go-between for illegal payments to President Dilma Rousseff's ruling Workers' Party.

The arrest was part of an anti-corruption investigation known as Operation Car Wash, Morningstar reported. On Tuesday, Brazil's Federal Police arrested José Carlos Bumlai, a cattle rancher, on suspicion of corruption, money laundering, and fraud connected with a $1.6-billion contract to operate a drilling ship used by state-controlled oil company Petróleo Brasileiro SA, or Petrobras.

Federal Judge Sérgio Moro announced this week that Bumlai misused the name of his close friend and former President Luiz Inácio Lula da Silva for personal interests, Agencia Brasil wrote. The ex-Brazilian leader hasn't been implicated in the investigation.

"There is no evidence connecting the former president to the illicit facts, but the behavior of the investigated José Carlos Bumlai dispels the natural fear to have the same name used in some way, though improperly, to obstruct or to interfere in the investigation or proceedings. Such events would have the potential to cause damages not only to the case, but also to the former President's reputation. [Thus] preventive [detention] was necessary to minimize both risks," Moro explained, as quoted by Agencia Brasil.

Prosecutors said that Bumlai served as a mediator to pass 12 million Brazilian reais ($3.23 million) in bribes from the Schahin Group, a São Paulo-based conglomerate, to the wallets of the Workers' Party, Morningstar reported. Authorities added that the Schahin Group covered up the alleged payments made in 2004 by making it appear as a series of loans to Bumlai through a bank the firm is controlling.

According to officials, the Workers' Party later expressed its thanks to the Schahin Group by guaranteeing that the company was granted the Petrobras contract, the news outlet added. Salim Schahin, one of the Schahin Group's partners, has been cooperating with authorities and has signed a plea bargain with prosecutors this month.

In his testimony, Schahin said Bumlai told bank executives he was giving the proceeds of the "loan" to the Workers' Party, Morningstar wrote. Schahin noted that the loan wasn't repaid and that Bumlai suggested using his contracts with the government to make sure that the company wins the Petrobras contract.

Igor Romario, a Federal Police chief and key figure in the investigation, also revealed that they are planning to probe more than $10 billion of construction contracts for the 2016 Olympic Games to be held in Rio de Janeiro. He said that some of the large engineering firms involved with the Petrobras issue "very probably" broke laws against price-fixing and used bribery on contracts to build Olympic venues, Reuters reported.