Brazil Securities Commission accepts BRL 277,200 settlement with D1000 investor relations director and rejects two other proposals

The Brazil Securities Commission (CVM) Board has approved a Termo de Compromisso with Rita Cristiane Ribeiro Carvalho and rejected settlement proposals submitted by GDC Partners Serviços Fiduciários Distribuidora de Títulos e Valores Mobiliários Ltda. and by Carolina Pestana Coelho. Carvalho, D1000 Varejo Farma Participações S.A.’s investor relations director, agreed to pay BRL 277,200 to settle an administrative case opened over alleged irregularities in the voluntary disclosure of the non-accounting information LAJIDA and LAJIR and an alleged informational failure, with potential breaches of CVM Resolution 156 and CVM Resolution 80. The Board followed the Termo de Compromisso Committee’s view in rejecting GDC Partners’ proposal in a sanctioning proceeding linked to alleged irregularities in a debenture issuance and a potentially fraudulent securities-market operation, citing a legal impediment identified by the CVM’s federal legal office and factors including the alleged seriousness of the conduct, the financial volume involved exceeding BRL 300,000,000, limited procedural economy with only one of 18 defendants proposing a settlement, indications of potential crimes and the proposed communication to the Federal Public Prosecutor’s Office in Rio de Janeiro, and the conduct’s framing under Group V of Annex A to CVM Resolution 45. In Coelho’s case, involving alleged disclosure and filing failures as former investor relations director of Ybirá Capital S.A., the proposal was rejected after she did not accept an enhanced pecuniary obligation suggested by the committee and because the amount and payment conditions were considered distant from those used in similar CVM cases.