Wesley and Joesley Batista, the brothers who formerly served as CEO and chairman of JBS, respectively, have been formally charged with insider trading and market manipulation.
Both had admitted to involvement in a scandal in which they admitted to bribing Brazilian politicians. Both have also been incarcerated for about a month.
Federal police three weeks ago formally accused the brothers of insider trading and asked federal prosecutors to file charges against them, which prosecutors did on October 10.
According to Brazilian prosecutors, the brothers minimized 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.”
Joesley has been replaced as the Brazil-based meat and poultry company’s chairman by Tarek Farahat, while Wesley has been succeeded by the brothers’ father, José Batista Sobrinho, as CEO.
While Joesley was no longer in his position of leadership with JBS when he was incarcerated, Wesley was still the company’s CEO. His father, also the founder of the Brazil-based meat and poultry company, succeeded him four days after his arrest.
Brazil prosecutors charge Batista brothers with insider trading
SAO PAULO (Reuters) - Brazilian prosecutors on Tuesday charged brothers Wesley and Joesley Batista, the controlling shareholders of JBS SA, the world’s largest meatpacker, with insider trading and market manipulation.
Brazil prosecutors charge JBS owners with insider trading
Brazil’s scandal-plagued billionaire Batista brothers who control the world’s largest meatpacker, JBS, have been charged with insider trading, prosecutors said on Tuesday.