Broker Fraud May Lead to Brazil $540 Million Loss, Folha Says
An alleged fraud in operations with sovereign bonds may lead to a 1 billion-real ($540 million) loss to Brazil’s government or to state-owned lender Caixa Economica Federal, Folha de S. Paulo reported.
Rio de Janeiro-based brokerage Gestora de Recebiveis Tetto Habitacao Ltda. sold overvalued government bonds to investors including Banco Bradesco SA and Brazil’s post office employee pension fund Postalis, according to the São Paulo-based newspaper, which said it had access to confidential lawsuit documents.
The alleged fraud happened between Sept. 2008 and Aug. 2009, period during which Caixa’s information system responsible for the data related to the bonds wasn’t working, which may make Caixa or the Brazilian government responsible for the potential losses taken by the bonds’ buyers, Folha said.
Caixa didn’t immediately return Bloomberg calls and e-mail seeking comment. Bloomberg couldn’t locate Tetto or its owner Eugenio Pacelli Marques de Almeida Holanda.
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