Operation in Rio targets former executives for alleged fictitious accounting within the retail chain

06/28/2024

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Financial figures were reportedly manipulated when Americanas failed to meet the targets anticipated by bank analysts — Foto: Domingos Peixoto/Agência O Globo

Information compiled by the Federal Public Prosecutor’s Office and the Federal Police, which underpinned Thursday’s (27) operation against 14 former executives of Americanas, reveals intricate details about the fictitious accounting scheme devised within the company.

The documents related to the search and seizure executed during the operation describe a “closing kit” containing the company’s actual financial figures. These were reportedly manipulated when the company failed to meet the targets anticipated by bank analysts. This alteration was purportedly done to avoid disappointing the market and key stakeholders, including Carlos Alberto Sicupira.

The scheme unraveled from what was known as the “zero version” or “V0,” which reflected the actual quarterly financial status of the company. However, the “V0” increasingly diverged from both the company’s initial projections and market expectations.

To align the actual figures with the projections, executives began suggesting adjustments, thus replacing reality with fabricated data. The fraud traces back to 2007, as per the executives’ plea agreement with the Federal Public Prosecution Service (MPF); however, the company has stated that the exact commencement of the scheme is unclear.

In the newly initiated “Operation Disclosure,” agents from Brazil’s Federal Police, an agency similar to the FBI, visited the residences of 14 former directors implicated in accounting fraud totaling R$25.3 billion. The 10th Federal Criminal Court in Rio de Janeiro issued two preventive detention orders and 15 search and seizure warrants. The operation, involving 80 Federal Police agents from Rio, was a collaborative effort between the Federal Police, the MPF, and the Securities and Exchange Commission of Brazil (CVM).

Pre-trial detentions have been requested for former CEO Miguel Gutierrez and former director Anna Saicali (former CEO of B2W, the group’s former digital company), both of whom have eluded authorities and are now considered fugitives. Mr. Gutierrez relocated to Madrid last year, and Ms. Saicali traveled to Portugal earlier this month but has since left the country, according to sources.

The International Cooperation Center has placed both names on Interpol’s Red List. Mr. Gutierrez stated in a release that he has not had access to the records of the precautionary measures and “never participated in any fraud.” Attempts to contact Ms. Saicali for comment were unsuccessful as of the close of this edition.

The investigation encompasses alleged crimes, including market manipulation, insider trading, criminal association, and money laundering. Convictions could carry penalties of up to 26 years in prison. The scheme purportedly aimed to artificially enhance the company’s financial results, thereby generating unwarranted bonuses for the directors involved.

Originally, it was estimated that about 30 individuals were implicated in the fraudulent scheme, as reported by Americanas in 2023 when signs of fraud first surfaced. However, investigations now suggest that the number peaked between 50 and 60 participants, some of whom may have been unwittingly involved, according to findings by Valor.

The ongoing investigation targets crimes allegedly committed by the company’s former board of directors, which operated under a five-tier hierarchical structure, each level having distinct responsibilities to ensure the scheme’s operation. The core group consisted of 14 executives.

All individuals identified across these hierarchical levels were subjects of the recent operation. According to the Federal Public Prosecutor’s Office (MPF), Mr. Gutierrez was positioned at the apex of this “criminal association” and labeled “the main architect of the fraud.” Anna Saicali, former CEO of B2W Digital and the Ame platform, was a second-tier leader. Below her were José Timotheo de Barros, former CEO of the physical stores, and Marcio Cruz, former CEO of the digital branch.

The majority of those under investigation occupied the fourth tier of the hierarchy, possessing limited decision-making authority and requiring approval to perpetuate the fraudulent activities. According to the MPF, this tier included individuals like Carlos Padilha, Fábio Abrate, Anna Sotero, Fabien Picavet, Jean Lessa, João Guerra, Luiz Saraiva, Maria Christina Nascimento, Murilo Correa, Raoni Lapagesse, and Marcelo Nunes, who later became one of the whistleblowers of the scheme. The fifth and final tier included Flávia Carneiro, who has also cooperated with the investigation.

The allegations primarily involve the recording of non-existent advertising budgets and the costs of undisclosed financial operations in the company’s financial statements. Additionally, regular expenses were improperly recorded as investments, and there were fictitious increases in sales figures.

Por Adriana Mattos, Camila Zarur — São Paulo and Rio de Janeiro

Source: Valor International

https://valorinternational.globo.com/