Brazil's former President Luiz Inacio Lula da Silva is now facing possible jail time for money laundering linked to the Petrobras scandal that ran during his regime.

On Wednesday, the Sao Paulo state prosecutor's office has officially placed the former Brazilian leader under investigation, linking him to the extensive Petrobras scandal that dragged some of the country's biggest business tycoons to prison.

According to them, Da Silva should be placed under "preventive custody" just as they file money laundering charges against him for failing to declare a luxury sea-front penthouse in the Guaruja resort in his official list of assets.

From Rags to Riches

Based on a concise biography from Britannica, Da Silva was not rich when he started joining the ranks of politicians in Brazil.

Originally known as Luiz Inácio da Silva, the former Brazilian president was born to sharecropping parents in Pernambuco where he worked several blue collar jobs, including as a street vendor, a shoeshine boy and a factory worker.

After the 1964 military coup, his family was among those who suffered greatly during the recession.

With a strike of luck, he found a job at the Villares Metalworks in São Bernardo do Campo where he become one of the members of the Metalworkers' Union.

In 1972, he left the Villares Metalworks and worked for the Union full-time until he was elected as their president in 1975.

There, he gained popularity among the Brazilian people and was able to establish the Workers' Party where he and his successor, Dilma Rousseff, were members.

In 2002, he became the president of Brazil after defeating José Serra. He ruled over the country for eight years.

During those years, he had been considered as one of the most honest leaders of Brazil.

The Rise of Petrobras

On Friday, Da Silva was questioned by the so-called "Car Wash probe" regarding his participation in the Petrobras scandal.

Apparently, Brazil's former leader is seen to have benefited from bribes from a group of businessmen who aimed to gain control over who got expensive contracts with the oil giant.

According to reports, the Lula Institute received around $8 million in donations.

Despite this, however, he was not charged of anything until Wednesday when prosecutors discovered the undeclared luxury penthouse in Guaruja.

What Lula's Arrest Means for Brazil

Already in a political turmoil, the Brazilian has suffered yet another blow amid recent proposals for Rousseff's impeachment.

According to Barral M Jorge political analyst Gabriel Petrus, the charge filed on Wednesday "tightens the noose further around Lula, and by implication Dilma as well."

If both of them go down, the country will be left without a leader to help the country bounce back from their current state of recession.