Petroleo Brasileiro S.A. - Petrobras (PBR)

[lecorb]

More Brazil Energy Crimes Alleged


2:55p ET September 15, 2014 (Dow Jones)

By Dimitra DeFotis
Brazil energy and industrial entrepreneur Eike Batista has been charged with financial crimes and may see his assets frozen.
Batista's energy exploration enterprise, formerly known as OGX Petróleo e Gás Participações, is in bankruptcy. Federal officials accuse Batista of manipulating financial markets by using privileged information when selling shares of the distressed oil-and-gas company, according to The Wall Street Journal.
Rio de Janeiro prosecutors seek to freeze assets valued at 1.5 billion Brazilian reais ($641 million) belonging to Batista, and people close to him.
Batista, 57, also could face jail time if found guilty. His attorneys say he did nothing wrong. At a minimum, he has mightily disappointed U.S. investor PIMCO and others that poured money into OGX to keep it from liquidation, WSJ reports. Batista lost $30 billion in 2012 and 2013 as OGX failed to meet production goals and his industrial empire collapsed. OGX and another company filed for bankruptcy protection, and other Batista businesses have sold assets.
Last weekend, it was Petrobras ( PBR), the state-run oil-exploration and refining giant, that was embroiled in controversy. A jailed former executive alleges Petrobras made illegal payments to numous politicians, including some in the goverment of Pres. Dilma Rousseff, who is running for reelection Oct. 5.
Shares of Petrobras are up 0.7% today. The iShares MSCI Brazil Capped ETF ( EWZ) is up 0.10%