Brazilian regulators target JBS investor relations officer
Oct. 18, 2017
by Erica Shaffer
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Jeremiah O'Callagan faces allegations of failing to disclose to the market the Btista plea deal in a timely manner.
SÃO PAULO, Brazil – The Brazilian Securities and Exchange Commission (CVM) recently opened a “Sanctioning Administrative Proceeding” against Jeremiah Alphonsus O’Callaghan, investor relations officer for JBS SA.
The agency is accusing O’Callaghan of not questioning managers and controllers of JBS SA regarding the plea agreement reached by federal prosecutors and Joesley and Wesley Batista. CVM also claims that O’Callaghan failed to disclose information about the agreement to the market in a timely manner and by using a “Material Fact” form, which is used to inform the market about company details.
In ‘Notice To The Market’ dated May 18, JBS SA confirmed seven executives had reached a plea agreement with prosecutors, and O’Callaghan’s name appeared on the document. The news rattled the Brazilian stock market and dragged down shares in JBS.
The Batista brothers later were arrested and jailed pending trial on charges of insider trading and manipulation of the stock market. Federal prosecutors accused the brothers of minimizing their financial losses — spurred by news of the plea deal — by buying and selling millions of JBS shares before giving evidence to prosecutors as part of the agreement.
The string of corruption and food safety scandals that have followed JBS SA led the company to withdraw plans for an initial public offering for a processed food business in the United States.