The Petrobras scandal has widened to indict Andre Esteves, who claims he is better than Goldman Sachs bankers.<\/p>\n
The chief executive of Brazil\u2019s largest independent investment bank and a powerful ruling party senator were arrested early Wednesday as part of an investigation into a massive corruption scandal at state-controlled oil company Petr\u00f3leo Brasileiro SA.<\/p>\n
Authorities in Bras\u00edlia arrested Sen. Delc\u00eddio\u00a0do Amaral, a member of the governing Workers\u2019 Party and the Senate whip, whose help is seen as critical for President Dilma Rousseff to pass unpopular austerity measures to shore up Brazil\u2019s shaky finances.<\/p>\n
Prosecutors say the two men were conspiring to pay millions in bribes to a key witness in the Petrobras investigation, then spirit him out of Brazil on a private jet to prevent him from turning state\u2019s evidence that could implicate them in the sprawling graft scheme.<\/p>\n
The arrests were stunning even by the standards of Brazil\u2019s biggest-ever corruption probe, which has toppled elites at the highest levels of the nation\u2019s business and government. The developments are yet another blow to Ms. Rousseff, whose popularity has plummeted as Brazil\u2019s economy has deteriorated and her party, known as the PT, has become mired in the scandal.<\/p>\n
Through his attorney, Mr. Esteves denied wrongdoing. Mr. Amaral\u2019s lawyer said his client is fighting the charges against him.<\/p>\n
Messrs. Esteves and Amaral were taken into custody on suspicion they were trying to stop a former Petrobras executive, Nestor Cerver\u00f3, from cutting a plea bargain with prosecutors and providing testimony that would link the men with the corruption scandal, according to Brazil\u2019s Supreme Court, which authorized the arrests.<\/p>\n
Mr. Cerver\u00f3 is accused of taking bribes in exchange for awarding supplier contracts as part of a massive graft ring that operated at Petrobras for more than a decade. Court documents portray the efforts by Messrs. Esteves and Amaral to free Mr. Cerver\u00f3 from custody.<\/p>\n
At a November meeting at an upscale Bras\u00edlia hotel, Mr. Amaral met with Mr. Cerver\u00f3\u2019s son, Bernardo Cerver\u00f3 and two other men to discuss ways to free Mr. Cerver\u00f3 from prison and have him flee the country, according to the documents.<\/p>\n
According to the documents, Mr. Amaral proposed using a legal maneuver to secure Mr. Cerver\u00f3\u2019s release from prison while he awaits trial.<\/p>\n
Supreme Court Justice Teori Zavascki said that Mr. Amaral \u201cis part of a criminal organization,\u201d citing the senator\u2019s alleged participation in \u201can escape plan\u201d that could jeopardize the corruption probe known as Operation Car Wash.<\/p>\n
The court documents didn\u2019t expressly indicate a link between BTG and the investigation.<\/p>\n
But Brazilian authorities have been investigating BTG\u2019s $1.5 billion purchase of a 50% stake in the African operation of Petrobras in 2013 following allegations that the price paid the bank may have been too low.<\/p>\n
BTG also is a major investor in troubled oil rig supplier Sete Brasil Participa\u00e7\u00f5es SA, which also was ensnared in the Operation Car Wash investigation.<\/p>\n
Mr. Esteves\u2019s arrest is a dramatic setback for one the nation\u2019s best-known financial executives. One of Brazil\u2019s richest men, Mr. Esteves, 46, has a net worth estimated at $2.1 billion, according to Forbes.<\/p>\n
Mr. Esteves quickly developed a reputation for innovative deal making and built BTG into Brazil\u00b4s largest independent investment bank, with 245 partners and 3,500 employees. The bank manages about $112 billion and has offices in 20 countries.<\/p>\n
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The Petrobras scandal has widened to indict Andre Esteves, who claims he is better than Goldman Sachs bankers. The chief executive of Brazil\u2019s largest independent investment bank and a powerful ruling party senator were arrested early Wednesday as part of … Continue reading