“BRASILIA – In a significant development, Brazil’s financial watchdog, CVM, has levelled accusations of insider trading against eight erstwhile top-level executives of retail giant, Americanas. The charges stem from alleged illicit trading of the company’s securities prior to the revelation of a major accounting scandal in 2023.

Late on Friday, CVM released a statement indicating that a thorough administrative probe had surfaced ‘conclusive, persuasive, and consistent evidence’ supporting the allegations against ex-CEO Miguel Gutierrez, and seven of his former colleagues, including Jose Timotheo de Barros and Anna Christina Saicali.

Americanas, in its response, stated that the conclusions drawn from the in-depth investigations conducted by its autonomous committee and governing bodies indicate it was the casualty of a ‘sophisticated accounting fraud’. The fraudulent activities were reportedly masterminded by its former executives, involving misuse of confidential data.

The retail giant expressed its steadfast commitment to unearthing the truth and ensuring that all individuals involved are legally penalized.

Refuting the allegations, Gutierrez’s legal team claimed that the accusations were based on unsupported conjectures. They maintained that the share sale undertaken by Gutierrez was executed with utmost integrity, complying fully with existing regulations.

Barros’ attorney refrained from commenting, stating that his client’s defense would be established by ‘demonstrating innocence with factual evidence’. Saicali’s representative also chose not to comment on the issue.

The accounting fraud saga that unfolded at Americanas last year sent shockwaves through Brazil’s financial markets, casting doubts on regulatory supervision and the efficacy of punishment for such transgressions.

Americanas, supported by three billionaire founders of investment firm 3G Capital, sought bankruptcy protection following the detection of $4 billion worth of accounting irregularities.”