Brazilian Judge: Americanas Investors Sicupira, Lemann Knew of R$54 Billion Fraud

Brazilian federal police have launched the second phase of Operation Disclosure, targeting prominent businessmen Carlos Alberto Sicupira and Paulo Alberto Lemann in connection with an alleged R$54 billion accounting fraud at the retailer Americanas. A federal judge in Rio de Janeiro authorized search and seizure warrants, stating that Sicupira and Lemann, along with Eduardo Saggiorno Garcia, a current board member, "had knowledge of the manipulations of results of the Americanas Group, having contributed to the criminal practices by holding the functional domain of the fact."

The judge, Giovana Teixeira Brantes Calmon, emphasized the need to "see life as it is" to understand the company's true financial situation after a decade of alleged fraud. She stressed that only by identifying those who benefited from and utilized these manipulations can accountability be achieved for the massive deficit that has harmed suppliers and misled investors.

Sicupira and Lemann, who were board members until September 2024, allegedly implemented a management style focused on meritocracy and close operational oversight. The investigation suggests this oversight included awareness of and participation in the fraudulent accounting schemes. The operation, which began on June 25, also involved warrants for executives from Itaú, Bradesco, and Santander banks. These financial institutions have denied any wrongdoing and stated their cooperation with authorities.