Brazil Securities Commission imposes BRL 3 million fraud fines and 60 to 69 month market bans in cases involving unregistered offerings and irregular advisory activity

The Brazil Securities Commission (CVM) has ruled on two administrative sanctioning proceedings, imposing fines and temporary prohibitions from operating in the securities market. The cases involve alleged public offerings carried out without CVM registration or an exemption, as well as alleged fraudulent operations, irregular portfolio management and irregular activity as an autonomous investment agent. In PAS CVM 19957.012104/2022-18, following the rapporteur vote of Acting Chair Otto Lobo, the CVM unanimously fined Investplan Securitizadora S.A. and DDbank Donard Digital Bank Serviços de Pagamento Ltda. BRL 700,000 each for conducting an unregistered public offering and BRL 3,000,000 each for a fraudulent operation. Salomão Silveira Soares and Pâmela Cristine de Souza were each fined BRL 350,000 for the unregistered offering and received a 60-month ban from acting, directly or indirectly, in one or more modalities of securities market operations for fraud. In PAS CVM 19957.001300/2023-30, the CVM unanimously fined Gleiverson Almeida Morete BRL 2,877,927.94 for fraudulent operations and banned him for 69 months from acting in any securities market modality for irregular portfolio management. By majority, the panel set Thatiana Schaffer de Souza Morete’s fine at BRL 170,000 for irregular activity as an autonomous investment agent, after Director Marina Copola diverged from the rapporteur’s proposed BRL 127,500 and was followed by Acting Chair Otto Lobo. Sanctioned parties in both cases may appeal, with suspensive effect, to the Council of Appeals of the National Financial System.