JBS S.A.: JBS Batista brothers charged for in...

JBS Batista brothers charged for insider trading

Wesley and Joesley Batista are the owners of meatpacker JBS SA.
Wesley and Joesley Batista are the owners of meatpacker JBS SA.

BRAZIL, São Paulo. Brazil’s scandal-plagued billionaire Batista brothers who control the world’s largest meatpacker, JBS, have been charged with insider trading. This was reported by the Financial Times.

Joesley and Wesley Batista, who are already under arrest, sparked one of the biggest political scandals in Brazil’s history in May after signing a plea bargain alleging they discussed bribes with President Michel Temer.

But prosecutors allege the brothers knowingly sold JBS shares, avoiding R$138m in losses, and traded in foreign currency, making $100m, before the alleged conversation with Mr Temer was leaked to the media in May. The share and currency trades were allegedly made without the knowledge of authorities after the brothers negotiated their plea bargain, incensing the prosecutors responsible for the agreement.

“The defendants minimised losses through the purchase and sale of shares and profited by buying dollars based on privileged information they had about the plea bargain agreement they had negotiated with the prosecutor general,” the public prosecutors office said in a statement.

The Batista brothers argue the foreign exchange transactions were part of routine business by the company, which is a large trader of other currencies because of its large international meat business. The share trades were also part of routine business, they said.

Source: FT


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