Home Business CVM sees evidence of irregularity in investigations against JBS

CVM sees evidence of irregularity in investigations against JBS

Regulatory body deepens investigations on the sale of shares and on performance in the future dollar market

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The Securities and Exchange Commission (CVM) conduct two inquiries on Tuesday  to investigate whether JBS has committed illegalities in the sale of shares and in the performance of the dollar. The step marks a breakthrough in two of the eight lawsuits filed against the world´s largest meatpacker, JBS SA, and one of its partners, businessman Joesley Batista, publicized two weeks ago.

The regulator also said that the last of the lawsuits, filed last Friday, was due to news that Joesley had used a company-owned aircraft to leave the country for the United States after his awarding credit. The businessman alleged to the Justice to suffer threats to justify the request to leave Brazil.

According to market information, JBS would have bought a huge amount of dollars before the currency appreciated after the delays. The valuation would have been sufficient to cover the amount of the fine imposed on the company for its involvement in the corruption scheme. The CVM would have been notified that the amount purchased on the eve of the news of the demarcation would be over one billion reais, according to the newspaper Valor Econômico.

The Reuters news agency also reported that JBS’s controlling group sold 329 million reais in company stock in April, which was accompanied by the purchase of 200 million reais in JBS shares from JBS’s own treasury last month, According to documents sent to the market.

In transforming the investigation, the CVM indicates that it has seen signs of irregularities in these two cases and will expand the investigations to analyze the facts. If the illegalities are proven, the process advances to another stage in which the company will be judged and could suffer penalties. There is no deadline for the completion of the investigation.