The Brazil Securities Commission (CVM) has concluded an administrative sanctioning proceeding against Vebcap Securitizadora de Ativos S.A. (trading as Euro Capital Securitizadora) and its administrators and partners Alessandro Jovaneli de Mello and Osvaldo Nogueira Araújo Filho, imposing fines and temporary prohibitions for conducting an unregistered public offering of securities and for a fraudulent operation in the securities market. Vebcap was fined BRL 13.0 million, while de Mello and Araújo Filho were fined BRL 7.5 million and BRL 5.2 million, respectively, for breaches linked to the requirement to obtain registration (or an exemption) for a public offering. Separately, CVM imposed a 39-month prohibition on each party from acting, directly or indirectly, in any type of operation in the securities market for the fraudulent operation charge. The defendants were acquitted of the allegation relating to Article 19, paragraph 5, item I, of Law 6,385. The sanctioned parties may appeal to the National Financial System Appeals Council, with suspensive effect.