Former JBS Chairman Joesley Batista and former JBS CEO Wesley Batista were acquitted by the Brazilan Securities and Exchange Commission (SEC) of charges of insider trading, as well as other charges.
Batista brothers hold shares in J&F Investimentos, which controls several Brazil-based businesses, including JBS, Banco Original, Eldorado Celulose, Ambar Energia and Flora.
SEC announced that Joesely was acquitted of charges of insider trading, and price manipulation in the business of JBS and Participações with JBS shares. Wesley was acquitted of charges of insider trading, price manipulation and breach of the duty of loyalty, also in the business of JBS and Participações with JBS shares.
J&F Investimentos was also acquitted of charges of insider trading, and price manipulation in the business of JBS and Participações with JBS shares.
The trial related to these charges began on May 29, 2023, but the sessions were suspended after SEC board member Director Flávia Perlingeiro requested a review of the case files. The trial resumed on October 31. With all votes in the decision led to the brothers’ acquittal on all three counts of insider trading.
J&F Investimentos, in a press release, stated, “This decision rectifies an injustice, proves that Brazilian institutions are solid and reaffirms the integrity of the operations of J&F group's executives and companies in the financial market.”
The case dates back to 2017, when brothers were accused of bribery, and later price manipulation, misuse of privileged information, trading of assets in a prohibited period, violation of the duty of loyalty and abuse of power of control in deals carried out by JBS and J&F with JBS shares.
Amid the allegations, Wesley stepped down as JBS CEO in September 2017, being temporarily replaced by his father and the company’s namesake, José Batista Sobrinho. Joesley stepped down as chairman in June 2017, being succeeded by Tarek Farahat.
JBS is the largest poultry producer in the world. It is also a major producer of beef and pork.
