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By Lise Alves, Senior Contributing Reporter

SÃO PAULO, BRAZIL – With a 2 to 1 vote, Brazil’s Securities and Exchange Commission (CVM) found the once billionaire businessman Eike Batista guilty of insider trading, ordering Batista to pay a fine of R$21 million.

Brazil, Rio de Janeiro,Once the richest man in Brazil, Eike Batista is currently under house arrest for corruption and was charged for insider trading,
Once the richest man in Brazil, Eike Batista is currently serving time under house arrest for corruption and was charged for insider trading, photo by Fernando Frazão/Agência Brasil.

“There is proof that the changes in the (OSX) business plan were decided at a meeting of the company’s board of directors, presided by Batista, on April 15th, therefore before the operation to dispose of said shares,” stated one of the officials Henrique Machado in the CVM process against Batista.

According to CVM officials, Batista sold over nine million of OSX’s common shares in April of 2013 for a total of R$33,700,460. The CVM found that Batista had at that time of the sale been aware of changes that would occur in OSX’s business plan and were released to the market only on May 17th of that year.

Officials say that as a result of the sale, Batista avoided a loss of over R$10 million when share prices dropped after his company’s business plan was announced.

The R$21 million fine is expected to put yet another strain in the businessman’s financial accounts. In April Batista, after spending almost three months in jail, agreed to pay a bail of R$52 million to be granted house confinement privileges.

Once considered the richest man in Brazil, Batista is accused of paying US$16.5 million to former Rio governor Sergio Cabral in exchange for benefits in the group’s works and businesses.

Batista’s lawyer, Darwin Correa said that Batista will appeal the Securities’ decision.

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