Brazil Securities Commission (CVM) decisions in four administrative enforcement proceedings resulted in convictions and sanctions against five individuals linked to a 2019 private subscription capital increase at Indústrias J.B. Duarte S.A. (now Blue Tech Solutions E.Q.I S.A.), while defendants were cleared in three unrelated cases involving an issuer share buyback, an audit engagement and an alleged abuse of power by a listed company board member. In the Blue Tech Solutions case, the capital increase was largely paid in credits attributed to the issuer’s controlling shareholder group, in exchange for inherited-property rights that were not effectively transferred to the company. The CVM imposed fines and temporary disqualifications, including a BRL 5,713,704.36 fine on controlling shareholder and executive Laodse Denis de Abreu Duarte for inducing approval of the transaction to his benefit, an additional BRL 400,000 for disclosure-related failings, and a 104-month ban from management or fiscal council roles at listed companies. It also sanctioned Edison Cordaro (BRL 575,000 for abuse of power and BRL 400,000 for failure to update a material fact), Fábio Aylton Casal de Rey (BRL 170,000 for approving the increase without required appraisal and approval and BRL 425,000 for acting in a conflict of interest), Paula Cristina Di Marco Huertas (BRL 2,856,852.18 for abusive voting plus BRL 340,000 and BRL 200,000 for governance and disclosure failures, and a 60-month ban) and Regiane Cristóvão Soares da Cruz (BRL 170,000 and a 51-month ban for lack of diligence). In the other matters, the CVM unanimously acquitted Eternit S.A.’s finance and investor relations director Vitor Manuel Cavalcanti Mallmann over alleged irregularities tied to a 2024 share buyback proposal, decided by majority that the statement of charges against Ernst & Young Auditores Independentes S.S. Ltda. and responsible partner Renato Nantes was defective in a case concerning audit and fair value measurement work for indirectly held real estate assets in two Pátria funds as of 31 December 2020, and acquitted by majority Henrique Constantino, a board member of Gol Linhas Aéreas Inteligentes S.A., in a case alleging an unlawful act of liberality. Those sanctioned in the Blue Tech Solutions case may appeal, with suspensive effect, to the National Financial System Appeals Council.
Brazil Securities Commission (CVM) 2025-12-11
Brazil Securities Commission imposes BRL 5.7m fine and 104-month ban in Blue Tech Solutions capital increase case and acquits in three other proceedings
The Brazil Securities Commission (CVM) imposed fines and temporary disqualifications on five individuals linked to a 2019 capital increase at Indústrias J.B. Duarte S.A., now Blue Tech Solutions E.Q.I S.A., for governance and disclosure violations. Key sanctions include a BRL 5,713,704.36 fine and a 104-month management ban for Laodse Denis de Abreu Duarte. In separate cases, the CVM acquitted individuals and entities involved in an issuer share buyback, an audit engagement, and alleged board member power abuse.