Brazilian securities and exchange commission CVM said it has closed a lawsuit against Banco Original SA for allegedly operating in the derivatives market using insider information prior to bribery claims made by businessmen Joesley and Wesley Batista against several politicians.
In a statement, CVM said there wasn't sufficient evidence that the bank was aware that it had access to confidential information, in which it gained from, and thus it decided to close the administrative proceeding initiated on May 19.
According to the Batista brothers, they paid out bribes in relation to loans and pension funds from Banco Nacional de Desenvolvimento Econômico e Social, parts of which were used as campaign donations to Temer and former Presidents Dilma Rousseff and Luiz Inacio Lula da Silva. The Batista family owns J&F Investimentos SA, which controls Banco Original and meatpacking company JBS SA.
Brazil's Congress dismissed the bribery charge against Temer, sparing him from a possible impeachment.
CVM also released updates on two other lawsuits on JBS. The agency decided to forward to the Superintendency of Investor Protection and Guidance the case analyzing an investor's claim that JBS purchased dollars prior to the bribery claims.
Meanwhile, CVM said it found possible liability from Jeremiah Alphonsus O'Callaghan, as JBS' director of investor relations, for not questioning the administrators and controllers of the company on information regarding the conclusion of prize collaboration agreements with the Federal Public Ministry. The lawsuit also questions the inappropriate disclosure of a market notice with information about the relevant fact.
The case now awaits the defense of the accused, CVM said.