Brazil Securities Commission sanctions auditors and an investment club trader with a warning and fines of up to BRL 200,000

The Brazil Securities Commission (CVM) has issued decisions in three administrative sanctioning proceedings, imposing a warning on one audit firm, monetary penalties on an audit firm and an individual auditor for audit-standard breaches, and a further fine on an individual for a fraudulent capital markets operation, while acquitting other respondents in parts of the cases. Inforcont Auditores Independentes received a warning in a case concerning an alleged failure to comply with the Continuing Professional Education Program (PEPC) by a partner for the 2021 year. In a separate proceeding, Crowe Macro Auditores Independentes Sociedade Simples was fined BRL 200,000 and Fabio Debiaze Pino was fined BRL 85,000 for alleged noncompliance with Brazilian auditing standards in audits of the 2020 financial statements of SCP Fundo de Investimento Imobiliário and FII Continental Square Faria Lima, with the allegations focusing on the adequacy, existence and valuation of fund assets; both were acquitted on other alleged documentation and accounting estimate standard breaches. In a third case, Fábio Junior Thibes was fined BRL 198,919.60 for a fraudulent operation involving alleged fraudulent diversion of resources from Clube de Investimentos Zeal via day-trade transactions, while Angélica Dib Ribeiro Thibes was acquitted of both the fraud allegation and an alleged breach of the duty of loyalty. The sanctioned parties may appeal to the National Financial System Appeals Council with suspensive effect.