Brazil Case Study: Energy Sector Fraud and Solutions

Kreller was hired to conduct corporate investigations to identify the proposed relationship of two individuals who served as financiers and brokers for a large cooperative investment firm with our client supplying significant capital. 

The Investigation

Kreller discovered that one of the subjects had recently been indicted for fraud and money laundering. The subject and his attorney stated that all charges had been dropped. Since it was still classified as an open case, Kreller’s local investigator confirmed that the court could not disclose information related to the case without the subject or his attorney’s presence. 

The Result

The subject’s attorney escorted our investigator to the local official’s offices, who confirmed that the case had been dismissed and the individual in question had been cleared of all charges.

As a result of our findings, the client was able to move ahead with the venture. 

Conclusion

Corruption, scandal, government connectivity, and litigious history are a few challenges when operating in Brazil. Enhanced due diligence can assist in ensuring you are engaging with a potential partner, not a potential liability. The risk factors are high, but the opportunities can be lucrative. Approach with caution and make certain to research all engagements properly. Trust Kreller to provide the corporate investigations needed to protect your company.