SÁO PAULO – JBS SA strongly denied any involvement in a federal sting in Brazil known locally as "Lava-Jato".

Valor Economico, a local newspaper, reported that JBS made four deposits totaling R$800,000 ($300, 363) in two accounts of a shell company involved in the federal investigation. But JBS said the payments were legal and made in compliance with an agreement signed by involved parties.

In a statement, JBS said "...the payments mentioned by Valor are related to the purchase agreement of a processing facility in Ponta Porã (MS), a Distribution Center in São José dos Pinhais (PR) and another Distribution Center in Itajaí (SC), whose sellers were Tiroleza Alimentos Ltda., Ademar Marquetti de Souza, Paulo Roberto Sanches Cervieri and Rodo GS Transportes e Logística Ltda. Payments referring to these acquisitions were made through bank accounts indicated by the sellers and in 2012 Rodo GS instructed JBS to use certain bank accounts that are, according to the news, currently being investigated by the Federal Police."

JBS added that the company has "all the necessary documentation to support the veracity" of the purpose of the payments.

According to Valor, federal police said the account belongs to Carlos Habib Chater, who was sentenced in federal court to five years and six months in prison for money laundering and alleged involvement in international drug trafficking.