Brazil Securities Commission fines Roberto Coutinho Schumann BRL 2.13 million and Marcio Coutinho Schumann BRL 54,048 for non-equitable trading practice

The Brazil Securities Commission (CVM) issued a decision in an administrative sanctioning proceeding opened by the Market and Intermediaries Relations Superintendence (SMI) into alleged price manipulation, fraudulent transactions and non-equitable practices involving Cortel Holding S.A. and three individuals. The CVM panel convicted Roberto Coutinho Schumann and Marcio Coutinho Schumann for using a non-equitable practice and dismissed the remaining allegations. Roberto Coutinho Schumann was fined BRL 2,127,992.80 and Marcio Coutinho Schumann BRL 54,048.02 for breach of Article 3 in conjunction with Article 2(IV) of CVM Resolution 62. Priscila Oliveira Gomes was acquitted of the same alleged breach, while Cortel Holding S.A. and Roberto Coutinho Schumann were acquitted under Article 2(II) and Roberto Coutinho Schumann was also acquitted under Article 2(III) of CVM Resolution 62. The decision followed the rapporteur vote of Director Marina Copola, with Interim President Otto Lobo concurring and Director João Accioly issuing a separate statement while agreeing with the conclusions. The sanctioned parties may appeal to the Appeals Council of the National Financial System with suspensive effect.