Name and Shame
Name and Shame



This complaint was posted on NAS on 4th Jan, 2021 and is a permanent record located here: .

NameandShame Author
The Activist Accountants
4th Jan, 2021

Another Brazilian Scam?

J&F Investimentos (Joesley Batista & Wesley Batista) tried to play smart with their investors and was caught red handed by none other than U.S. Securities And Exchange Commission.

Latest SEC AAER has shocked J&F Investimentos (Joesley Batista & Wesley Batista) investors who feel misled and betrayed by the company’s actions. The auditors at SEC are experts at what they do, which is catch financial frauds and this time they outdid themselves by looking into the financial statements of this company.

Even if the suspension gets lifted by the time you read this, it doesn’t guarantee that this company is trustworthy. Remember, the SEC doesn’t put suspensions on a stock until something illegal happens.

On the first glance, their financial statements might seem just fine, but the devil is in the details, and after some thorough analysis, the truth is revealed. Let’s dive deeper and take a look at the official findings:

Detailed J&F Investimentos (Joesley Batista & Wesley Batista) Scam Report

1. This action arises from a bribery scheme by Joesley Batista and Wesley Batista (hereinafter “the Batistas”), their company J&F, and JBS, a company which J&F and its affiliates control, and which is the largest meat and protein producer in the world with net revenues in 2019 in excess of $50 billion. JBS’s shares trade on the Brazilian stock exchange and its American Depositary Shares trade in the U.S. over-the-counter market. In 2009, the Batistas sought to continue to expand their meat business into the United States through acquisitions of multiple U.S. companies. From 2009 through 2015, the Batistas made illicit payments totaling approximately $150 million for the benefit of then Brazil Finance Minister (“Minister”) and various political parties and candidates in Brazil at the request and direction of the Minister. The Batistas made the payments in return for the Minister’s assistance, among other things, in obtaining and maintaining $2 billion in equity financing (“BNDES Investment”) from the Brazilian National Development Bank and its affiliate (together “BNDES”) in order to facilitate JBS’ acquisition of U.S. issuer Pilgrim’s Pride Corporation (“Pilgrims”). 2. At the time of the acquisition in December 2009, Pilgrims was under Chapter 11 bankruptcy protection as a result of the financial crisis’ impact on its operations. The BNDES Investment, which the bribes facilitated, and which was preserved by the bribe scheme, allowed the Batistas to acquire Pilgrims and successfully have it exit bankruptcy and continue to operate as a going concern under the Batista family-controlled conglomerate. Following the acquisition, Wesley Batista served as CEO of JBS and Chairman of the board for Pilgrims, and Joesley Batista served as CEO of J&F and a member of the board of Pilgrims. As provided for in the share purchase and investment agreements, JBS acquired Pilgrims. After the acquisition, unbeknownst to Pilgrim’s management, the Respondents carried out the bribery scheme and its funding using, at times, JBS operating accounts which contained funds that were commingled with funds obtained from Pilgrims through intercompany transfers, special dividends, and other means. The Respondents then paid bribes at the direction of the Minister. Pilgrim’s books did not reflect this. 3. The Batistas, individually and through J&F and JBS, exerted significant control over Pilgrims. Pilgrims shared office space, overlapping board members and executives, accounting and SAP systems, and certain internal accounting controls and policy documents with JBS and its U.S. affiliate, JBS USA. Throughout 2009 to 2015, unbeknownst to Pilgrims management, the Batistas continued the bribery scheme using, in part, certain JBS operating accounts which contained funds that were commingled with funds obtained from Pilgrims, through intercompany transfers, dividend payments, and other means. To further conceal their conduct, the Batistas did not disclose to Pilgrims’ accountants and independent public accountants during due diligence and audits that certain funds transferred to JBS were commingled with funds used to pay bribes in Brazil. As a result of this conduct, Joesley Batista, Wesley Batista, J&F, and JBS caused Pilgrims’ books and records to inaccurately record the transfers and payments and caused Pilgrims’ failure to maintain an adequate system of internal accounting controls in violation of the books and records and internal accounting controls provisions of the Foreign Corrupt Practices Act (“FCPA”).

Next Steps For The Investors at J&F Investimentos (Joesley Batista & Wesley Batista)

It is recommended that you discuss this latest disclosure with your finance advisor as this company has done plain fraud and tried to deceive its investors and stockholders alike. While the company might try to convey that this enforcement action was nothing more than a small-one-time-thing, the reality could not be further from the truth.

Be smart about your decision on whether to work with a company such as this one or not.

If you haven’t entered a contract with this company yet, then it is better to stay away, than risk associating with a possible scammer.

Whenever such disclosures are made public, companies tend to misinform their investors and the public by burying this information. This is why I posted it here at NameAndShame. People deserve to know the reality about these guys, especially when they so shamelessly try to hide it.

Don’t Listen To Their White Lies

To save their image and manipulate investors, companies run cold-call campaigns and advertisements after an enforcement action by the SEC. This is mainly done to distract and persuade the investors and stockholders at the company from the horrible reality.

Please do not fall for the white lies companies often tell in order to save face in such situations. From shifting blame, to calling SEC “scumbags”, company representatives will do anything and everything to keep you from changing your mind about them.

I strongly recommend that you take all your investment decisions without any external influences from the company. A logical approach, combined with experience goes a long way. Don’t let their fake smiles be the result of your monetary loss.

Share Your Opinion, Findings & Evidence

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