New York Daily News

Meatpacker cops to U.S. corruption

- BY CHRIS SOMMERFELD­T

The owner of a scandal-scarred Brazilian meatpacker pleaded guilty to corruption crimes in Brooklyn Federal Court on Wednesday — just weeks after the company’s American subsidiary scooped up its latest taxpayer-funded bailout from the Trump administra­tion.

J&F Investimen­tos, the controllin­g shareholde­r of the sprawling JBS meatpackin­g empire, had one of its attorneys admit in a video conference that it dished out nearly $150 million in bribes to top Brazilian officials between 2005 and 2017 in exchange for getting state-backed financing to expand its meat business into the U.S.

As part of the plea, J&F — which is controlled by Brazil’s infamous Batista family — agreed to cough up $256 million in fines, capping a lengthy investigat­ion by the Justice Department and adding to the record-breaking $3.2 billion fine that the company had to pay in 2017 to settle a similar probe in its home country.

Despite JBS’ long history of questionab­le business practices, the Trump administra­tion’s Agricultur­e Department showered the meatpacker’s main American subsidiary, JBS USA, with more than $100 million in taxpayer-funded product bailouts between January 2019 and February 2020, as previously reported by the Daily News.

But what’s not previously known is that the Agricultur­e Department kept forking over bailouts to JBS USA even as the J&F plea deal neared, according to federal records obtained by The News this week.

Less than six weeks ago, on Sept. 4, Colorado-based JBS USA secured its most recent Agricultur­e Department bailout — $1 million for more than 700,000 pounds of surplus pork products, the records show.

The September contract was the 12th bailout that JBS USA received from the Agricultur­e Department this year alone, according to the records.

Combined, the 12 contracts funneled $40.3 million in taxpayer cash into JBS USA’s coffers, meaning the Brazilian-owned company has raked in at least $140.3 million in Trump administra­tion bailouts since last year.

Spokespeop­le for the Agricultur­e Department did not return requests for comment Wednesday and it’s unclear if the bailouts will stop in light of the J&F guilty plea.

J&F remains under the control of Wesley and Joesley Batista, a couple of Brazilian brothers who have admitted to personally bribing hundreds of government officials in their home country.

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