Brazilian legal proceedings

Brazilian proceedings include J&F’s corporate leniency agreement, the reported arrest and release of Wesley Batista, and the CVM’s administrative decisions.

In May 2017, Reuters reported that Wesley and Joesley Batista testified that they had spent 600 million reais bribing nearly 1,900 politicians. J&F announced a 10.3-billion-real corporate leniency penalty, approximately $3.2 billion at the time, payable over 25 years with inflation adjustments.

J&F Investimentos entered a corporate leniency agreement with Brazil’s Federal Prosecution Office in June 2017. Pilgrim’s Pride’s 2024 filing says J&F agreed in June 2017 to an 8-billion-real fine and 2.3 billion reais for social projects over 25 years, subject to inflation adjustments. The filing says the total fine was later reduced to 3.5 billion reais and Brazil’s Supreme Federal Court suspended J&F’s obligation to make additional installment payments in December 2023 after J&F petitioned over alleged misconduct by enforcement authorities. The company filing says the agreement otherwise remained in effect.

Reuters reported that Federal Police arrested him in São Paulo on September 13, 2017, amid an investigation into suspected use of nonpublic information in market transactions before the public disclosure of J&F executives’ cooperation agreement. His lawyer called the detention unjust and said the Batistas had cooperated with authorities. In October 2023, Brazil’s Securities and Exchange Commission reported that its board voted to absolve Wesley of specified administrative allegations involving JBS share transactions and, in a separate case, currency-related transactions involving JBS, Seara and Eldorado. Those administrative decisions are distinct from the 2017 criminal investigation.

In February 2018, Brazil’s Superior Court of Justice ordered Wesley Batista released after nearly six months in detention, subject to restrictions, according to Bloomberg and Folha reporting.

In its October 31, 2023 decisions, Brazil’s securities regulator acquitted Wesley and Joesley Batista of specified administrative allegations involving market transactions. Some votes were divided. J&F received a 500,000-real fine for trading JBS shares during a restricted period. These were Brazilian securities proceedings; the U.S. bribery and accounting resolutions were issued separately in 2020.

Related Reports

Sources and Records

  1. https://noticias.uol.com.br/ultimas-noticias/reuters/2017/09/13/pf-prende-wesley-batista-em-investigacao-sobre-informacao-privilegiada.htm
  2. https://www.gov.br/cvm/pt-br/assuntos/noticias/2023/cvm-conclui-julgamento-de-processos-envolvendo-empresas-do-grupo-jbs-e-seus-executivos
  3. https://www.sec.gov/Archives/edgar/data/802481/000080248124000024/ppc-20240401.htm
  4. https://www1.folha.uol.com.br/internacional/en/brazil/2017/06/1889328-owner-of-jbs-receives-discount-in-agreement-with-attorney-generals-office.shtml
  5. https://www.bloomberg.com/news/articles/2018-02-20/brazil-court-orders-meat-tycoon-wesley-batista-release-from-jail
  6. https://www1.folha.uol.com.br/internacional/en/brazil/2018/02/1957518-superior-court-of-justice-releases-jbs-executive-wesley-batista-joesley-still-in-jail.shtml
  7. Reuters: J&F Brazilian leniency agreement, May 31, 2017
  8. J&F: financial terms of leniency agreement, May 31, 2017

AI generated report by Explorvia.com.