News Wire

Brazilian police serve 100 warrants in pension investigations

SAO PAULO/BRASILIA (Reuters) – Brazilian federal police served 100 search-and-seizure warrants on Thursday as part of an investigation into alleged graft involving a pension fund for post office workers.

A police statement did not name any targets of the investigation, but said they included managers at the Postalis fund, executives at a foreign financial institution, listed companies and risk-assessment firms.

Postalis suffered large losses as a result of embezzlement, police said in the statement.

Postalis representatives did not immediately respond to a request for comment. The pension fund came under federal management last year due to alleged fraud.

Representatives for the Brazilian unit of Bank of New York Mellon Corp confirmed that federal police had visited its offices on Thursday as part of an investigation, adding that the bank was cooperating with authorities.

Last month, prosecutors asked the local unit of BNY Mellon, which managed part of the assets held by Postalis, to return 8.2 billion reais ($2.6 billion) to the pension fund. According to prosecutors, BNY had failed to monitor risks and did not comply with local asset-allocation rules. At the time, the unit called those accusations “unfounded”.

(Reporting by Eduardo Simões in São Paulo and Ricardo Brito in Brasília; Writing by Bruno Federowski; Editing by Raissa Kasolowsky and Susan Thomas)

 

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