Parent of Brazil’s JBS pleads guilty to U.S. foreign bribery charges By Reuters

Parent of Brazil's JBS pleads guilty to U.S. foreign bribery

© Reuters. FILE PHOTO: Outbreak of the coronavirus disease (COVID-19) in Greeley, Colorado

By Jody Godoy and Sabrina Valle

NEW YORK/RIO DE JANEIRO (Reuters) – Brazil’s J&F Investimentos, parent company of the world’s largest meatpacker, JBS SA (SA:), pleaded guilty to U.S. foreign bribery charges and agreed to pay $256 million in criminal fines, prosecutors said on Wednesday.

Only half of the fine, $128 million, will be paid to U.S. authorities, as the company will receive credit to payments made to Brazilian authorities.

In 2017, J&F agreed to pay a record-setting 10.3 billion-real ($1.85 billion) fine in its home country for its role in corruption scandals that severely weakened Brazil’s then-president, Michel Temer. Top executives in Brazil had admitted to bribing more than 1,900 politicians to secure contracts for the group.

Shares of JBS rose 5.8% in Sao Paulo following the announcement in the United States, amid hopes the deal would allow the company – which reported a net profit of 3.4 billion reais last quarter – to draw under a line under the sprawling corruption scandal.

According to documents made public on Wednesday in a U.S. court, the amount of the bribes paid by J&F officials to high-level government officials exceeded $150 million, which generated $178 million in profit for the company, U.S. prosecutors said.

Lucio Martins, J&F’s director of compliance, pleaded guilty to violations of the U.S. Foreign Corruption Practices Act on behalf of the company in a video conference proceeding before U.S. District Judge Margo Brodie in Brooklyn.

Between 2005 and 2017, the company conspired to bribe officials to get the Brazilian government and other entities to arrange financing and equity transactions benefiting J&F, according to a U.S. charging document.

Prosecutors said part of the bribe negotiations took place within the United States.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

About us

InvestLab is a financial services technology company focused on the global trading market. Founded in 2010 in Hong Kong, the company develops trading, market data, and social research products that enable individual investors and small to mid-size brokers to access global markets. We provide brokers and financial institutions cross border capabilities for retail investors into 43 markets globally.