The Federal Public Prosecutor denounced to the Federal Court in Sao Paulo the businessman Wesley Batista for the crime of insider trading, corresponding to the use of inside information to obtain gains in the financial market, in exchange operations of the companies Seara Alimentos and Eldorado Celulose in mid-2017, when it had signed an award agreement that was still under stealth.
In his second criminal charge against the businessman for this crime, the MPF claims that Wesley took advantage of inside information to carry out illegal operations in the two companies that, in the face of the disclosure of the J & F executives, led to the strong US dollar and yielded to it, according to the MPF, almost 70 million reais from dollar contracts negotiated days before.
Expert reports from the Securities and Exchange Commission (CVM) and the Attorney General’s Office (PGR) have shown the atypicality of the transactions carried out. Eldorado, for example, acquired forward dollar contracts on May 9 and 16 for a total value of $ 280 million, equivalent to three times the company’s profit in the previous year, according to the MPF.
Seara, on the other hand, made the purchase of future US $ 25 million dollar between May 10 and 16, a figure 50 times higher than the average of the operations that the company had been doing in the foreign exchange market since the second half of 2016 , said the prosecutor.
The dates coincide with the period between the award-winning collaboration agreement at the beginning of May and the disclosure of its content on the 17th. In addition, the Federal Prosecutor states that it obtained an exchange of messages from Wesley’s WhatsApp determining the completion of operations.
“Knowing the impacts that such information would have on the country’s economy – which is an inevitable dollar hike – Wesley decided to benefit financially from the economic instability that would be caused by the disclosure of the terms of the award-winning collaboration and the evidence presented,” said prosecutor of the Republic Thamea Danelon, one of the complainants.
Wanted, representatives of the businessman did not respond immediately to requests for comments.
Wesley – and his brother Joesley Batista – had already been denounced by insider trading by the MPF in which they are already defendants, in the case of unlawful gains from the sale and repurchase of shares of JBS and with negotiations of other dollar at the same time of the awarding ceremony.
The two were eventually arrested on the basis of the investigations into the previous complaint, but were subsequently served by decisions that removed them from the jail and determined that precautionary measures had been taken.
The Federal Supreme Court (STF) has not yet decided whether to repeal the terms of the batista brothers’ award agreement that was requested by the Attorney General’s Office.