Home > News > World
Saturday April 19, 2014 MYT 2:15:04 AM
Saturday April 19, 2014 MYT 2:16:04 AM
RIO DE JANEIRO (Reuters) - Brazil´s federal police have opened an investigation into former billionaire Eike Batista for financial crimes, including insider trading, manipulation of markets and money laundering, Brazilian media reported on Friday.
If the police probe leads to criminal charges against Batista, it would be yet another major blow for a businessman once hailed as Brazil's model entrepreneur and symbol of its economic success.
Batista´s EBX oil, mining and logistics empire, which two years ago was valued at $60 billion, collapsed last year in a mountain of debt and massive filings for bankruptcy protection.
A week ago, Brazil's securities commission, CVM, announced that Batista was under investigation for insider trading as chairman of his now-bankrupt oil-producing company Óleo and Gás Participações SA, formerly known as OGX, and its sister company, shipbuilder OSX Brasil SA.
Batista is now being investigated by the police at the request of federal prosecutors in Rio de Janeiro for financial crimes involving the allegedly illegal sales of shares before his conglomerate fell apart, O Globo newspaper reported.
The police probe will focus on the sale of shares last year in oil producer OGX before the company informed the market that much of its reserves were not commercially viable, Folha de S. Paulo newspaper said.
The Federal Police would not comment.
A spokeswoman for Batista said his EBX group had not been officially notified by federal prosecutors or police and would provide the authorities with explanations in due course.
"Everything will be cleared up and Eike Batista's good faith will be proven," his lawyer Darwin Corrêa said.
Batista, Brazil's richest man for most of the past decade, could face up to 23 years in prison if convicted.
Securities watchdog CVM wants to determine whether Batista withheld information that was unfavourable to some of his businesses while encouraging investors to buy more stock in his companies at a time when he sold shares of OGX and OSX.
Among other probes, the regulator will look into whether Batista used his Twitter account to manipulate OGX share prices while hiding the company's problems.
(Reporting by Anthony Boadle; Editing by Leslie Adler)
Russia calls for fair investigation of tycoon held in Cambodia
Insight - Ecological risks may spell trouble for Batista's Brazil port
U.N. chief says access not a must for Sri Lanka war crimes probe
Russian tycoon and Norilsk co-owner files for divorce
Bangladesh Islamist leader sentenced to death for war crimes
Three priests and layman charged in Spanish sexual abuse case
British detective writer P. D. James dies, aged 94
Hong Kong student leaders banned from Mong Kok protest site
Ukraine puts on parliamentary show of unity in message to Russia
Iran Supreme Leader says not opposed to extension of nuclear talks
Israel says foiled Hamas plans for Jerusalem attacks
China Internet giants in tit-for-tat battle for users
TripAdvisor’s Travellers’ Choice All-Inclusive Resorts
Dinner with Suu Kyi? - No thanks, say Myanmar military
Copyright © 1995-2014 Star Publications (M) Bhd (Co No 10894-D)