Brazil Securities Commission sanctions Bluebenx and two executives for alleged fraudulent securities operation and unregistered public offering

The Brazil Securities Commission (CVM) ruled in a sanctioning administrative proceeding initiated by its Securities Registration Superintendent (SRE) examining alleged fraudulent activity in the securities market and an unregistered public distribution of securities involving Bluebenx Tecnologia Financeira S.A. and individuals linked to the case. Reporting Director Otto Lobo voted to impose monetary penalties on Bluebenx and two executives, while proposing acquittal for two other individuals. Under the proposed outcome, Bluebenx would be fined BRL 8,000,000 for a fraudulent operation and BRL 18,530,709.84 for conducting a public offering without CVM registration or exemption. Roberto de Jesus Cardassi would receive a 96-month temporary ban from acting directly or indirectly in one or more types of securities market operations, plus a BRL 4,632,677.46 fine for the unregistered offering. William Tadeu Batista Silva would receive an 87-month temporary ban and a BRL 2,316,338.73 fine for the unregistered offering. Renato Sanchez Gonzalez Junior and Andre Massao Onomura would be acquitted of the charges. The session was suspended after Director João Accioly requested a review of the case.