Published: 12/02/2016
Federal prosecutors in Brazil allege that in 2011 the now defunct Banco Rural SA lent USD19.7 million to two firms controlled by JBS parent company J&F Investmentos SA.

Those companies then deposited the money into J&F’s financial unit which lent the money back to Banco Rural’s parent company.

This transaction was intended to circumvent the law prohibiting loans from one financial entity to its owners.

Despite a denial from the company that Chairman Joesley Batista or any other executives of the world’s largest meat processor were involved in the transaction, the news sparked a sell off in shares.