Prosecutors Charge Batista Brothers With Market Manipulation

10/11/2017 - 11h11

The Public Prosecutor's Office charged on Tuesday (10) the owners of JBS Wesley and Joesley Batista with using inside information to make a profit in the market - which would have generated an irregular gain of up to R$ 238 million (US$ 74.3 million).

The investigation looked into the purchase and sale of dollars and shares of the company in the run-up to the executive's own testimonies in a plea bargain deal.

In the case of the purchase of dollars, only Wesley Batista was liable and could be sentenced to 3 to 18 years in prison.

"We believe there was a collusion between the brothers, but no evidence was found against Joesley," said Federal prosecutor Thaméa Danelon.

The investigation used information from the Securities and Exchange Commission (CVM, in its Portuguese acronym), WhatsApp audios with Wesley's voice and statements from JBS employees who received the purchase and sale orders and confirmed the atypical nature of the transactions.

Joesley will not be held responsible for the foreign exchange deal but, like Wesley, was indicted for market manipulation by buying and selling shares of JBS, which avoided a financial loss with the devaluation of the papers after their testimonies were made public.

He may face a sentence of 2 to 13 years in prison.

In addition, there is the possibility of a fine of up to three times the financial gain, calculated up to R$ 100 million (US$ 31.25 million), in foreign exchange transactions, and R$ 138 million (US$ 43 million) in purchase and sale and shares.

Translated by MARINA DELLA VALLE

Read the article in the original language

	Zanone Fraissat/Folhapress
	Brothers Joesley and Wesley Batista