Brazil loses first insider trading case in court
- Brazil
- 02/29/2008
The Brazilian Securities and Exchange Commission lost an insider-trading case for the first time in court as it failed to prove that investment fund Fator Administracao de Recursos breached rules over confidential information in a 2001 state-asset sale. The Financial Resources Council, a court-like body linked to the Finance Ministry, ruled that a suspension and fines imposed on Fator fund manager Walter Appel and the company may not proceed. CVM, as the regulator is known, imposed a one-year suspension on Appel in November 2004, saying he used confidential information from a separate Fator unit in a Cia. Paranaense de Energia SA secondary offering. Yesterday’s ruling cannot be appealed.
