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Banco Paulista CEO resigns amid Lava Jato probe

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Banco Paulista CEO resigns amid Lava Jato probe

Banco Paulista SA CEO Alvaro Augusto Vidigal resigned as the São Paulo-based bank became the focus of prosecutors in the ongoing the Lava Jato investigation, UOL reported.

The bank said in a statement to the news outlet that Alvaro Augusto Vidigal stepped down from "all the managing posts he held in the institution." He still reportedly owns roughly 68% of preferred shares in the institution.

Former Odebrecht executive Olívio Rodrigues Júnior reportedly quoted the CEO in his testimony to public prosecutors, claiming he was both aware and active in the alleged bribe scheme.

Earlier in May, Brazil's federal police had arrested three executives from the entity, a general manager and two foreign exchange employees.

Prosecutors claim that the bank was involved in a money laundering scheme organized by construction company Odebrecht SA, which reportedly siphoned off 328 million Brazilian reais between 2009 and 2015.

According to UOL, sources linked to the Lava Jato probe said that the rest of the board is also under scrutiny by prosecutors in what is now the 61st stage of the investigation.

As of May 24, US$ 1 was equivalent to 4.03 Brazilian reais.