07/10/2014 - Batista Faces Trial Next Month on Alleged Insider Trading


TM&B Law na mídia
Notícia citando o Dr. Leonardo Theon de Moraes, é publicada na Bloomberg News, em 07.10.2014. Para ler na íntegra clique aqui. Batista Faces Trial Next Month on Alleged Insider Trading Eike Batista, once the world’s eighth-richest person, will face trial in Brazil next month for allegedinsider trading. Judge Flavio Roberto de Souza from Rio de Janeiro’s Third Federal Criminal Tribunal rejected Batista’s request for the case to be dismissed and set a Nov. 18 court date, according to a magistrate ruling posted on the court’s website yesterday. Batista’s empire of commodities and logistics startups collapsed last year, forcing his flagship oil unit into bankruptcy protection amid mounting debt, a shortfall in revenue and a crisis in confidence among investors. Last month, Rio federal prosecutors accused the 57-year-old of crimes including insider trading and market manipulation. That triggered an order by Judge Souza to freeze 117 million reais ($48 million) in assets held by the former billionaire. Neither Batista nor his lawyer, Sergio Bermudes, responded to requests for comment on the decision yesterday. Bermudes had previously said the allegations against Batista were groundless. While Batista’s defense will probably try to delay the trial, he would have to be present for the hearing if proceedings unfold as scheduled, according to Leonardo Theon de Moraes, head of the corporate and bankruptcy at Sao Paulo-based law firm Theon de Moraes & Britto Sociedade de Advogados. “The arguments presented by Eike Batista’s defense weren’t enough to convince the judge to reject the accusation,” Theon de Moraes said in e-mailed comments. “If found guilty, in the worst-case scenario he may suffer from up to 13 years of jail and fines.”

Appeal Option

Batista will have the option to appeal the ruling and take the case to superior courts, he added. The Rio prosecutors accuse Batista of allegedly using privileged information twice last year to achieve an advantage while selling shares of his oil company, the judge said in his ruling. The businessman allegedly profited as much as 237.5 million reais with the transaction, according to the judge’s recount of the accusation. The entrepreneur, who at his peak was worth more than $30 billion according to the Bloomberg Billionaires Index, told newspaper Folha de Sao Paulo last month that he has a negative net worth of $1 billion. Batista’s testimony will be taken Nov. 18 and a ruling may be handed up as early as the same day, Judge Souza told Agencia Estado yesterday. He didn’t reply to interview requests left with his court’s staff. The case number is 0029174-94.2014.4.02.5101 To contact the reporter on this story: Juan Pablo Spinetto in Rio de Janeiro atjspinetto@bloomberg.net To contact the editors responsible for this story: James Attwood at jattwood3@bloomberg.net Jim Efstathiou Jr., Tina Davis