JPMorgan Being Probed in Brazil Bribery Case, Reuters Says
(Bloomberg) -- Brazilian authorities are probing whether JPMorgan Chase & Co. was involved in an alleged bribery and money-laundering case linked to Petrobras, the state-run oil company, Reuters reported.
The case is focused on JPMorgan’s purchase of 300,000 barrels of fuel oil in 2011, Reuters said, citing documents it reviewed and two law-enforcement sources.
JPMorgan declined to comment on the Reuters report. The bank hasn’t been contacted by authorities about the investigation, a person familiar with the matter said, asking not to be identified discussing non-public information.
Brazilian authorities are trying to determine if the New York-based bank purchased fuel at artificially low prices by using middlemen to bribe employees on the trading desk at Petroleo Brasileiro SA, as Petrobras is formally known, according to the report.
The so-called Carwash graft investigation has upended Brazilian business and political life since 2014, and has expanded from graft at refinery and oil-platform contracts to the oil-trading business. Petrobras has said previously that it was a victim of corruption, and has put a stronger compliance and governance system in place.
Petrobras told Reuters it has “zero tolerance in relation to fraud and corruption.”
No charges have been brought in the JPMorgan probe, Reuters said.
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