The Brazil Securities Commission’s board rejected proposed settlement agreements to close three administrative sanctioning proceedings, following negative recommendations from the Term of Commitment Committee. In the case against Antônio Augusto de Souza Coelho, the CVM’s Federal Specialized Attorney’s Office identified a legal impediment to the agreement, and the committee also cited the seriousness of the alleged conduct, the gap between the offered amount and CVM benchmarks, limited procedural efficiency given only one of seven defendants sought settlement, and the conduct’s classification under Group V of Annex A to CVM Resolution 45. The proceeding concerns an alleged fraudulent securities market operation that may have generated financial advantage to the detriment of investment funds. For Edson Jacintho Borges, acting as liquidator of CCX Carvão da Colômbia S.A. in liquidation, the attorney’s office found no legal impediment, but the committee rejected the proposal after the proponent did not accept the terms reflected in a prior committee decision that had sought improved amounts; the case relates to the alleged failure to file the issuer’s 2022 and 2023 registration forms under CVM Resolution 80. For Reag Distribuidora de Títulos e Valores Mobiliários S.A., as administrator of the Reag Alpha fund, the committee pointed to alleged omissions in September 2023 disclosures to GetNinjas about the purpose of significant share acquisitions, which were followed by the fund’s acquisition of control and a current holding of 65.018%, and framed the conduct under Group IV of Annex A to CVM Resolution 45, with the underlying allegation tied to Article 12 of CVM Resolution 44. With the settlement proposals rejected, the related enforcement proceedings remain open.

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