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Batista convicted of misleading oil company shareholders

Bnamericas Published: Friday, June 12, 2020
Batista convicted of misleading oil company shareholders

Former Brazilian tycoon Eike Batista (pictured) was convicted this week for presenting false information to investors regarding the potential for oil discoveries in pre-salt areas of the Campos and Santos basins during drilling by his firm OGX Petróleo e Gás

He was sentenced by a Rio de Janeiro court to eight years in a semi-open jail and handed a hefty fine, but can still appeal, a court spokesperson confirmed. Two other former executives of the company were also convicted.

Batista, whose net worth has plunged from US$30bn in 2012 to practically zero, has served stints in prison previously but was always released after appealing.

Last year, Batista was sentenced to eight years for manipulating OGX's share price. 

In 2017 and then again in 2019 he was arrested as part of the Lava Jato probe on suspicion of corruption and money laundering. 

Batista is the son of Eliezer Batista, who was president of mining giant Vale from 1961 to 1963 and from 1979 to 1986.

Batista’s conglomerate peaked between 2005 and 2013. His mining business made him one of the most prominent businesspeople in Latin America and then he then expanded into infrastructure, oil and gas, logistics and technology.

His empire disintegrated when an oil exploratory campaign of OGX failed. That triggered a crisis of confidence among investors that affected Batista’s other assets.

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