Batista SEC accounting case

The SEC’s October 2020 order found that Wesley and Joesley Batista and their companies paid approximately $150 million in bribes during 2009–2015. The payments helped obtain and maintain $2 billion in BNDES financing used in part for JBS’s 2009 acquisition of Pilgrim’s Pride. The order describes shell companies, accounts held for a Brazilian minister’s benefit, fake invoices, cash and payments routed as official election donations. Some funds passed through JBS accounts containing money transferred from Pilgrim’s Pride. These payments overlap with the conduct addressed in J&F’s criminal case.

The SEC found that Wesley and Joesley Batista concealed the bribery arrangements from Pilgrim’s Pride’s accountants and auditors, knowingly caused inaccurate books and records, and violated Exchange Act Section 13(b)(5) and Rules 13b2-1 and 13b2-2. J&F and JBS also caused Pilgrim’s accounting and internal-control violations. In the settled administrative proceeding, JBS agreed to approximately $26.9 million in disgorgement and interest, and each brother agreed to a $550,000 civil penalty. The resolution required compliance improvements and three years of reporting.

Related Reports

• Wesley Batista
• Joesley Batista
• JBS
• Trump’s Beef Import Plan: The Batista Brothers, Bribery Cases and a $5 Million Donation

Sources and Records

1. https://www.sec.gov/litigation/admin/2020/34-90170.pdf
2. DOJ: J&F guilty plea, October 14, 2020
3. SEC enforcement announcement, October 14, 2020
4. U.S. Code: 15 U.S.C. 78m

AI generated report by Explorvia.com.