BRAZIL: Police Arrests JBS Owner Wesley Batista Amid Insider Trading Probe
Brazilian police have arrested Wesley Batista, one of the owners of JBS, as part of an investigation into insider trading.
Authorities believe that the Batista family and JBS positioned themselves in the stock and foreign exchange markets to profit from the news that the company signed a plea-bargain deal with public prosecutors.
The company started negotiating the plea-bargain deal by the end of March, and news about the deal broke by mid-May.
Brazilian investigators are trying to clarify two events. The first involves the sale of JBS shares between April 24 and May 17 by FB Participa??es, its parent company, and the purchase of those shares by JBS.
The move, according to the police, caused JBS' shareholders to absorb part of the losses that otherwise FB Participa??es would incur alone.
The second event regards the purchase of U.S. dollar derivatives between April 28 and May 17 by JBS. The buying pattern differed from the usual investments made by JBS, and the company profited from those transactions after the plea-bargain deal negotiations leaked to the press, on May 17.
Wesley Batista is the brother of Joesley Batista, who was arrested on Sunday by the Brazilian Federal Police.