The board of Brazil’s Securities and Exchange Commission (CVM) is close to exonerating Joesley and Wesley Batista, part owners of investment holding company J&F Investimentos, of accusations of insider trading dating back to 2017.
On May 17, 2017, the Brazilian press revealed that Joesley Batista had secretly taped then-President Michel Temer. The recording itself was leaked soon after, showing Mr. Temer apparently condoning the payment of hush money to former House Speaker Eduardo Cunha, who was in prison at the time.
The revelation sent Brazilian markets haywire, with the Ibovespa benchmark index tanking 8.8 percent and the Brazilian real hitting its lowest value in 14 years, in what became known as “Joesley Day.”
While the scandal very nearly brought down the Temer administration, federal prosecutors suspected that the Batista brothers used their knowledge of impending market chaos to cash in on the stock market, selling off shares in JBS and buying them back after their value crashed.
The Batista brothers firmly maintain that the transactions in question were perfectly legal and necessary — claiming they couldn’t control when the information would publicly surface.
J&F Investimentos owns JBS, the world’s largest meatpacking company. In a statement, J&F said that the acquittal “undoes the injustice committed against the group and the businessmen, ratifying the integrity and legitimacy with which J&F, its executives, and controlled companies have always operated in the financial market.”
CVM board member Flávia Perlingeiro asked to take the case against the brothers under advisement, delaying its conclusion. However, a majority of members have already voted in favor of acquitting both Joesley and Wesley on all counts.
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