Brazil police raid JBS on insider trade probe

Brazil’s federal police on Friday raided the offices of JBS SA to investigate the alleged use of insider information in financial market dealings, pushing shares in the embattled meatpacker to a twoweek low.

Police said there were indications that JBS and controlling shareholder FB Participacoes SA gained an unfair advantage in trading stocks, currency futures and forwards in April and May.

“There is evidence these dealings occurred with the use of privileged information, generating undue advantages in capital markets in a context in which almost all investors incurred financial losses,” the police said in an emailed statement.

JBS and its parent company J&F Investimentos have denied any wrongdoing.

The police operation follows several investigations by securities regulator CVM on trades made before the revelation of a plea deal by top JBS executives, which triggered a financial market selloff last month.

In the plea testimony, the Batista brothers, Joesley and Wesley, said President Michel Temer received 15 million reais in JBS bribes, exacerbating a scandal that threatens to oust him from government.

On Friday, police served three search warrants at the offices of JBS and FB in Sao Paulo, and also detained four unnamed people for questioning. (RTRS)