Dantas’ Inferno and the Tupi SEC: Journos Cry “SLAPP Suit” in Pension, Privatization Pilantragens

MIT B-school alum Daniel Dantas: The embattled banker seems to bug a lot of Brazilians.

Item: CVM TEM MAIS A FAZER DO QUE FALAR SOBRE DANTAS (from Conversa Afiada, by Paulo Henrique Amorim).

Translation: “The Brazilians securities regulator has better things to do than pronounce on the Dantas case.”

But see this update: Opportunity Costs for Dantas Fellow Travelers.

At issue: SLAPP suits against investigative reporters and the purchase of a publishing house by a fellow who has been (allegedly — his criminal trial proceeds at a leisurely pace) caught bugging journalists, and this renewed war of words we say breaking out recently between the former cabinet minister, Mr. Gushiken, and Mr. Attuch of IstoÉ Dinheiro — who is now officially an employee of Mr. Dantas, if Dantas’ deal to acquire Editora Três gets done.

[UPDATE: That deal did not get done, even though O Globo predicted it was a done deal. ]

It all begins with a story published in Veja magazine last May, according to which senior government officials, including the President and senior Justice officials, including the head of the federal police, Mr. Lacerda, maintained illegal offshore accounts.

The story, which ran in May 2006, was based on a bogus dossier.

Veja prints fiction and conspiracy theory as fact.

And with amazing perserverance, too: Journos from the House of Civita propaganda organ was later hauled in to give depositions in another case in which its reporting, which would have implied criminal wrongdoing on the part of Federal Police jailers, did not check out. See Veja Só and Federal Prosecutors Rebut Veja.

Dantas was investigated by the Federal Police for involvement in the first ratfuck, if I am not mistaken. On which more later.

Ah, yes, here it is. It is a good thing that Terra does not subscribe to the theory promoted in a recent editorial by a Portuguese “content manager,” as Mr. Bastos of the Jornal de Negócios noted the other day:

A few days ago, one of these “managers” who earn their living laying people off in order to “enable to the company to compete,” came out in one of the “papers of record” against “this thing they call [institutional] memory.” Huffing and puffing, he wrote: “Newspapers have absolutely no need of memory.” With that attitude and that prose style, the man is obviously nothing but a two-legged jackass. But the truth of it is that it was the senior editors who, through their notorious subservience, gave rise to the origin of this species.

I will translate the news item that appeared at the time for the record, below.

Note, before we start, that Mr. Amorim, who, along with government officials and business competitors, was allegedly bugged by Daniel Dantas of the Opportunity Fund and the U.S. firm he hired to “manage his political risk” — Hewlett-Packard did not invent the procedure, apparently — has a dog in the hunt on this story.

We might naturally ask, therefore, a priori, whether or not he is able to keep a cool head about it.

Because “Why did you not do anything?” is not the most diplomatic, or accurate, way to ask the question, perhaps.

Why did I not win the Nobel Prize today, or cure cancer? Maybe I am working on doing just that, but the project is top secret. “What is the status of case X, Y, or Z” might be a better way to phrase it when e-mailing everybody in sight and giving their secretaries a migraine in the process.

So let’s just go straight to the text of the editorial the understandly distraught Amorim e-mailed off to the busy Brazilian bigwigs, for translation, annotation, and future reference.

O jornalista Rubens Glasberg, editor da publicação Teletime News, publicou nesta quarta feira um editorial sobre outra ação que Daniel Dantas move contra ele.

Rubens Glasberg, editor of Teletime News, published an editorial on Wednesday about another lawsuit that Daniel Dantas has filed against him.

Quibble: I went to register (free) for that publication, as I am always looking for new content inflows for the NMM-OSBB. In exchange, they wanted enough information on me to drop a smart bomb on me with enough pinpoint accuracy to spare our cats from any collateral damage — up to and including my SSN-equivalent CPF, or “registration of a physical person.”

Yes, I am a registered, tax-paying Brazilian alien.

But dude, why do you need to know that, just in exchange for a chance to decide whether your publication is worth reading or not? Not a fair deal. End quibble.

Este editorial aponta, de novo, indícios de uma passividade inexplicável da Comissão de Valores Mobiliários e seu presidente, Marcelo Trindade, sempre que se trata do grupo Opportunity e seu presidente, Daniel Dantas.

This editorial pointed out, once again, signs of an inexplicable passivity on the part of the securities regulator and its president, Marcelo Trindade when it comes to the Opportunity Group and its president, Daniel Dantas.

Por que a CVM não faz nada sobre/contra Dantas?

Why has the CVM done nothing about or against Dantas?

A CVM é o sherif do mercado de capitais – menos para Daniel Dantas?

Is the CVM the sheriff of the capital markets except when it comes to Dantas?

Dantas está acima da lei (da CVM)?

Is Dantas above the law (as laid down by the CVM?)

O Conversa Afiada vai encaminhar este editorial e estas perguntas ao presidente da CVM, Marcelo Trindade; ao Ministro da Fazenda, Guido Mantega; e a todos os membros do Conselho Monetário Nacional, que é, em última análise, quem fixa as diretrizes para a CVM.

Amorim says he is going to do the e-mailing you read about above.

E pedir que respondam a essa singela questão: por que a CVM não faz nada com Dantas?

Amorim says he is going to ask them the question he just asked.

É bom não esquecer que existe a possibilidade de Daniel Dantas ter amealhado, enquanto administrou os fundos de pensão que trabalhavam para ele (NO GOVERNO DE FERNANDO HENRIQUE CARDOSO), e as empresas que, com esse dinheiro, comprou, a insignificante quantia de US$ 1 bilhão.

We would do well not to forget that Dantas may also have socked away the trifling sum US$1 billion while running the pension funds that worked for him (DURING THE CARDOSO ADMINISTRATION) and the companies he bought with this money.

(E é por causa das ligações de Daniel Dantas com FHC e José Serra que a mídia conservadora não abre o bico para falar sobre Dantas…)

(It is because Dantas has links with Cardoso and Serra that the conservative media never opens their beak about the subject.)

Como se sabe, Dantas dispõe de um conjunto infinito de advogados – que ele poderia compartilhar, se lhe desse na telha, com ex e atuais lideres do PT. São esses tantos advogados que acionam jornalistas íntegros como Rubens Glasberg quantas vezes quiserem, na tentativa de fazê-lo calar.

As we know, Dantas has an infinite supply of lawyers — something he may have in common, if we were able to peak under the hood, with former and current PT leaders. These are the armies lawyers dispatched to sue honest journalists like Rubens Glasberg as often as they can, in an attempt to shut him up.

SLAPP suits, it is true, are legion around here.

Leia, a seguir, o editorial de Glasberg:

Glasberg’s editorial is reproduced below.

CVM e Opportunity: é impressionante …!

CVM and Opportunity: It’s really something else!

O Opportunity volta a processar a empresa editora de Teletime News e seus jornalistas. Para nós e quem nos conhece isso deixou de ser novidade. Daniel Dantas, no que já se assemelha a uma patologia psiquiátrica conhecida como delírio de querulência, tenta pela sexta vez nos intimidar, abusando do direito de ir à Justiça.

Opportunity has again sued the publishing house of Teletime News and its journalists. This is nothing new to us or those who know us. Daniel Dantas, in what is starting to look like that psychopathology known as persecution mania, is trying for the sixth timeto intimidate us, abusing his right to appeal to the courts.

I read recently that Brazil has 33 million active lawsuits — half of them in process in Sâo Paulo.

The local OAB wants to invest heavily in legal process automation savior machines — its Web site even features banner ads for a specific vendor of same, and how does that work, exactly? — but opposes tort reforms proposed by the national OAB. As I understand it.

The local courts are mad as hornets — at Serra, it seems, and federal Justice — because they say their budget is R$1 billion short this year.

This may constitute a “power of the purse” measure designed to force them into stop accepting bureaucratic legal filibusters. See also Lula: Roto-Rooter To ‘Bureaucratic Obstructions’.

Vale lembrar que esse senhor e seus métodos truculentos, como a bisbilhotagem e outros ainda menos ortodoxos, não nos assusta. Desta vez, somos processados porque, no entender de Dantas e seus “opportunistas”, fizemos perguntas não precisas ao presidente da CVM, Marcelo Trindade, a quem cabe fiscalizar os administradores de carteiras de valores mobiliários.

Bear in mind that this gentlemen and his truculent methods, including spying and other even less orthodox methods, do not frighten us. This time, we are being sued because, in the view of Dantas and his Opportunists, we put questions we should not have asked to CVM president Marcelo Trindade, whose job it is to oversee investment and portfolio managers.

Questionamos Trindade porque queríamos saber se a CVM pretendia se informar sobre a sentença em última instância da Justiça britânica que restabeleceu decisão da Justiça de Cayman, onde Daniel Dantas e sua irmã Verônica foram considerados mentirosos pelo juiz Kellock, que também considerou as provas que apresentaram contra seu ex-sócio e cotista do Opportunity, Luiz Roberto Demarco, manufaturadas e falsas (manufactured and false), ou seja, fraudadas. Queríamos saber se esse fato internacional teria alguma relevância para os trabalhos de fiscalização da CVM e se o fato de o Opportunity Fund já ter uma condenação junto à autarquia (o que é negado pelos advogados de Dantas) também não pesaria na avaliação do mesmo grupo que estava pedindo na ocasião a abertura de capital da Santos Brasil.

We spoke with Trindade because we wanted to know whether CVM intended to take notice of the finding of a British appeals court that upheld a ruling by a Cayman Islands court, where Dantas and his sister Veronica were deemed to be lying by Judge Kellock, who also found that they evidence they presented against their ex-partner and Opportunity shareholder, Demarco to be “manufactured and false.” That is to say, fraudulent. We wanted to know if this international fact might be of any relevance to the CVM in its oversight work and whether the Opportunity Fund is answering to any complaints filed with the regulator — Dantas’ attorneys say that there are none — and whether or not this information would weight in the evaluation of the group as it prepares an IPO for Santos Brasil.

Como sempre fazem quando a atividade jornalística independente os aborrece, os gestores do Opportunity alegam que sofreram dano moral. Sua queixa, portanto, deixou de ter interesse jornalístico. Mesmo assim colocamos à disposição de quem se interessa a íntegra da inicial do Opportunity e a nossa contestação, da lavra dos profissionais da firma Bitelli Advogados. Para ter acesso aos documentos vá ao endereço www.teletime.com.br/arquivos/nova_acao_dantas.zip

As they always do when independent journalism inconveniences them, Opportunity’s managers allege damage to their honor and reputation. Their complaint, however, has no journalistic interest. Even so, we provide anyone interested with [all the relevant court filings at the following URL].

O que mais nos importa no caso não é a atitude previsível dos Dantas e caterva quando confrontados com informações de interesse público a seu respeito que não sejam notas e reportagens laudatórias plantadas por seus assessores de imprensa ou outros súcubos. Nosso objetivo não é agradá-los, mas informar nosso leitor.

What most interests us about the case is not Dantas’ predictable attitude when confronted with information about himself that is of interest of the public but that does not consist in reports and articles that praise him, planted in the press by his flacks and other succubi. Our job is not to make Dantas happy, but to inform our readers.

O que sim nos preocupa, no caso, não é o Opportunity, mas a conduta do presidente da CVM. Teletime News enviou uma primeira série de perguntas à assessoria de imprensa de Marcelo Trindade sobre o caso de Cayman no dia 4 de outubro do ano passado. Por mais de duas semanas tentamos obter as respostas, sendo seguidamente informados de que Trindade estava muito atarefado e não tinha como nos atender. Como a intenção de protelar o assunto indefinidamente estava evidente, decidimos então publicar as perguntas que não eram respondidas, chamando a atenção também para outros casos envolvendo o Opportunity que permaneciam encalhados na CVM. Foi quando tivemos uma definição imediata de Marcelo Trindade: ele não responderia mais as perguntas, porque Teletime News as havia publicado. Logo em seguida, seríamos confrontados com outra ação judicial de enorme rapidez.

What worries us in this case is not Opportunity, but the conduct of the president of the CVM. Teletime News sent a first series of questions to Trindade’s press office on the Cayman case on October 4 of last year. For more than two weeks we tried to obtain responses, only to be informed that Trindade was very busy and could not make time for us. As it seemed obvious that he intended to put off the matter as long as possible, we decided to publish the questions that were never answered, calling attention at the same time to other cases involving Opportunity that have gotten bogged down inside the CVM. That done, we finally got a response from Trindade: He would not respond to the questions because TeleTime had published them. Upon which we were hit with another lawsuit with stunning speed.

Now that is a case of bad press relations: “You can publish my answers, but you cannot publish the questions they are responding to.”

Assumindo que o grupo Opportunity não tem (ou não devia ter) nenhuma ligação com a CVM e seus dirigentes, em menos de dois dias úteis da publicação pela Internet das perguntas feitas a Trindade, a parruda e extensa ação contra a editora e seus jornalistas Rubens Glasberg e Samuel Possebon já estava aparelhada e distribuída em juízo. As perguntas foram divulgadas na quinta-feira, 19 de outubro, às 17:52 hs, no site da Teletime e na segunda-feira estava a ação distribuída com uma longa exordial.

Though we presume that the Opportunity group has no (or ought not to have any) ties with the CVM and its directors, within two business days about we published the questions for Trindade on our Web site, the complex and massive lawsuit against our publisher and journalists Glasberg and Possebon was already filed and assigned out to a judge. The questions were published on Thursday, Oct. 19 at 5:52 pm on the TeleTime Web site, and by Monday the lawsuit had been distributed, with a long judicial memorandum attached.

É impressionante …!

It’s really something else!

Essa dupla rapidez simultânea (da negativa de Trindade após a publicação das perguntas e da ação do Opportunity) contrasta com a lentidão da CVM em tocar os assuntos desagradáveis para o grupo de Dantas.

The simultaneous bursts of speed (the speed of Trindade’s refusal to answer the questions we had published and the speed of Opportunity’s lawsuit) contrasts with the amount of time it takes the CVM to get around to matters that Dantas finds disagreeable.

Além de várias irregularidades apuradas pelos novos gestores da Brasil Telecom após a destituição do Opportunity que foram denunciadas à CVM e sobre as quais não se teve mais notícia, paira no limbo da autarquia um outro assunto de extrema gravidade: o chamado acordo guarda-chuva (Umbrella Agreement), que pode determinar todo o futuro societário de empresas como Brasil Telecom, Telemig Celular, Amazônia Celular, Telemar entre outras, todas abertas em bolsa e fiscalizadas pela CVM..

Beyond the various irregularities brought to light by Brasil Telcom’s new management after Opportunity was stripped of its stake and complained of to the CVM, about which we have heard nothing further, another very serious incident is stuck in bureaucratic limbo there: the so-called Umbrella Agreement, which could determine the future shareholder structure of firms like Brasil Telecom, Telemig Cellular, Amazônia Celuar, Telmar, and others, all traded publicly on the stock exchange and regulated by the CVM.

Vale lembrar o que foi essa pequena esperteza de rábula: trata-se de um acordo do Opportunity consigo mesmo pelo qual continuaria a votar pelos fundos de pensão (Previ, Telos, Funcef e Valia) mesmo depois de destituído da gestão do CVC/Opportunity Equity Partners FIA – o chamado CVC nacional, cujos cotistas eram os fundos e onde se encontrava o grosso dos recursos investidos na privatização de empresas como BrT, Telemig Celular, Metrô do Rio e outras.

Recall what this neat little trick involves: It involves an agreement Opportunity signed with itself to continue to vote the proxies of the pension funds (Previ, Telos, Funcef and Valia) even after it had been dismissed as manager of the CVC/Opportunity Equity Partners FIA — the so-called “national CVC,” whose shareholders were the pension funds and where most of the funds invested in the privatizations of firms like Brasil Telcom, Telemig Celular, Metrô do Rio and others.

A destituição ocorreu em 6 de outubro de 2003 e uma semana depois o acordo foi tornado público pelo Opportunity. Os fundos desconheciam sua existência e suspeitam que ele seja pós datado. Em março de 2004 (há três anos, portanto), os fundos de pensão reportaram à CVM diversas irregularidades cometidas pelo grupo de Dantas na gestão de seus investimentos, entre as quais esse Umbrella Agreement. Pediam penalidades administrativas cabíveis ao grupo de Daniel Dantas e demais pessoas físicas vinculadas aos ilícitos reportados, incluindo a suspensão ou cassação do direito de exercício da administração de carteiras de valores imobiliários.

The Dantas group was dismissed as fund manager on October 6, 2003. One week later, the existence of this contract was publicized by Opportunity. The pension funds were not previously aware of its existence, and suspect that it may have been post-dated. In March 2004 (three years prior, that is) the pension funds had complained to the CVM of various irregularities committed by Dantas in managing their investments, among them the so-called Umbrella Agreement. They wanted the Dantas group to pay the appropriate penalities, including suspension of his license to manage securities portfolios.

Em abril de 2005, (há dois anos), a CVM, através de sua Procuradoria Especializada, emitiu parecer sobre as razões pelas quais o referido acordo deveria ser anulado: porque foi celebrado pelo Banco Opportunity “em situação configuradora de conflito de interesses, haja vista ter se desviado dos interesses em razões das quais se legitimara sua atuação”.

In April 2005, two years ago, CVM, through its special prosecutor, issued a finding on the reasons why the Umbrella Agreement should be annulled: Because it was celebrated by Banco Opportunity “in a situation defined by a conflict of interests, creating the appearance that the reasons it gave to defend its action might seem to contravene those interests.

Em várias ocasiões posteriores os fundos de pensão e seus co-investidores, como Citibank, instaram a CVM a decidir, no âmbito de suas atribuições, sobre as irregularidades atribuídas ao Opportunity, além do Umbrella Agreement. Até agora nada aconteceu. Especialmente com respeito ao Umbrella Agreement, o atraso da CVM em julgar o Opportunity não encontra explicação razoável. Trata-se de uma matéria puramente jurídica que não necessita de produção de provas.

On various occasions afterwards the pension funds, along with co-investors such as Citibank, asked CVM to use its powers to rule on the irregularities attributed to Opportunity, other than the Umbrella Agreement. Nothing has happened to date. This is especially true in the case of the Umbrella Agreement, in which the CVM’s delay in judging Opportunity has no reasonable explanation. This is a purely legal matter that does not require the production of evidence.

I would like a list of the “unreasonable” explanations, if any.

Or has the CVM been completely mum on the subject? Without citing a reason for its “no comment” or than “being busy with other things”?

O tempo decorrido desde a reclamação feita pelos fundos de pensão, o fato de já existir posição oficial da CVM, por meio do parecer da procuradoria, sobre as inúmeras ilegalidades que permeiam o acordo, tornam injustificável que até o presente momento não haja notícia de que o Colegiado da CVM tenha instaurado processo administrativo nem tampouco sancionado o grupo Opportunity por conta de um caso de tamanha gravidade e lesividade aos princípios e regras que norteiam o mercado de valores mobiliários. Enquanto isso, o Opportunity segue suas atividades normalmente.

The time elapsed since the complaint was filed by the pension funds, and the fact that CVM has already taken an official positions, through a finding by its enforcement office, on the innumerable illegalities that permeated the agreement, make it impossible to justify CVM’s delay in initiating an administrative proceeding against Opportunity, or even sanctioned it, in a case with this degree of seriousness and contravention of the principles and rules that govern the securities markets. In the meantime, Opportunity goes about its normal business.

Cabe ressalvar que ao longo dos sete anos em que esteve à frente da Brasil Telecom e de outras empresas privatizadas e muitas delas abertas em bolsa, com milhões de acionistas minoritários, o grupo de Dantas administrou um Capex somado a um Opex no total de quase US$ 20 bilhões. Um pequeno deslize de 5% nessa gestão se aproximaria de US$ 1 bilhão e 10% chegaria a casa de US$ 2 bilhões. Não se pode no caso esquecer que só o Citibank reclama de seu antigo gestor pelo menos US$ 300 milhões que lhe caberiam segundo provas apresentadas na Justiça de Nova York. É possível que o assunto em pauta seja um dos maiores rombos de que se tem notícia na história do capitalismo brasileiro.

It is worth noting that during the seven years that Dantas headed Brasil Telcom and other privatized companies, many of them publicly traded, with millions of minority shareholders, the Dantas group controlled a combined capital and cashflow of nearly US$20 billion. A small slice off of those holdings, say 5%, would yield $1 billion, 10% would mean $2 billion. We should not forget that Citibank alone is suing for the return of $300 million from its former fund managers, according to a lawsuit filed in New York. The affair might yet turn out to be one of the biggest busts the Brazilian markets have ever seen.

Será que o presidente da CVM considera o conjunto de irregularidades do grupo de Dantas apontado em diversos momentos à sua autarquia “totalmente irrelevante para o mercado de capitais” como considerou no início de sua gestão o julgamento do Opportunity Fund?

Does the president of the CVM consider the sum of the irregularities committed by the Dantas group during his term to be “totally irrelevant to the capital markets,” as he said about the Opportunity Fund at the outset of his administration.

Seria também impressionante …!

That, too, would be something else!

P.S.: Para refrescar a memória de quem nesse País ainda se interessa pelo assunto, seguem-se alguns dos casos “dantescos” ainda pendentes na CVM:

PS: To refresh the memory of anybody in the country who still cares about such things, here are some Dantesque cases still pending before the CVM.

1) Processo administrativo número 06/2002 contra as empresas Parcom e Forpart, controladas pelo Opportunity. Trata-se de investigação sobre irregularidades relacionadas à prática de garimpagem (compra de ações fora da bolsa). Esse inquérito ainda está em andamento. Em 2005, os indiciados nesse inquérito, incluindo Verônica Dantas, a Parcom, a Forpart e mais uma série de pessoas ligadas ao Opportunity, propuseram um Termo de Compromisso para encerrar o processo, o que foi negado pela CVM.

(1) Matter No. 06/2002 regarding Parcom and Forpart, controlled by Opportunity. This is an investigation into irregularities involving the practice of “prospecting” (buying stocks outside the stock market). The inquiry is still open. In 2005, the parties accused in this case, including Veronica Dantas, Parcom, Forpart and another group of persons linked to Opportunity, proposed a settlement agreement, which CVM turned down.

2) Em abril de 2006, a CVM informou a este noticiário que apuraria denúncia publicada por TELETIME News, segundo a qual Verônica Dantas, irmã de Daniel Dantas, iniciou a preparação de um processo da Parcom (controlada pelo Opportunity) contra a Brasil Telecom Participações (BTP) em abril de 2005, quando era diretora de ambas as empresas. A Parcom, investigada pela CVM no processo administrativo 06/2002 por fatos relacionados à prática de garimpagem, argumentava que a BrT teria causado prejuízo aos detentores destas ações. Ou seja, com informações privilegiadas que só o gestor da BrT poderia ter, a Parcom comprava ações da BrT no mercado não-organizado, acusava a BrT de ter causado prejuízo aos detentores destas ações e ainda montava a estratégia jurídica de defesa da própria BrT.

(2) In April 2006, the CVM informed this newsdesk that it would follow up on the accusation published by TELETIME News that Veronica Dantas, sister of Daniel Dantas, caused a lawsuit to be filed by Parcom (controlled by Opportunity) against Brasil Telecom Holdings (BTP) in April 2005, when she was a director of both firms. Parcom, investigate by the CVM in Case No. 06/2002 for garimpagem (“prospecting,” “claim jumping”?) argued that BrT had harmed the holders of its shares. That is to based on insider information that only BrT management would have, Parcom had bought BrT stock in the informal stock market and was accusing BrT of harming the interests of the holders of those share, even as it mounted BrT’s own legal defense strategy.

Wha? When the serpent finishes swallowing itself, starting with its own tail, what dimension does its belly disappear into?

3) Representação feita em dezembro de 2005 pela Brasil Telecom contra o Opportunity em função de indícios de fraude e quebra de dever fiduciário referentes à gestão de Daniel Dantas na empresa, incluindo de transações duvidosas que totalizam R$ 361 milhões. O caso mais grave é uma operação de financiamento para permitir ao Opportunity adquirir o controle da Telemig Celular e da Amazônia Celular com o caixa da BrT.

(3) A complaint filed in December 2005 by BrT against Opportunity pointed to sisngs of fraud and breach of fiduciary duty during Dantas’ management, including suspect transactions totalling R$361 million. The most serious accusation involved a financing operation that enabled Opportunity to acquire control of Telemig Celular and Amazônia Cellular using cash from BrT.

4) Apuração sobre os elementos da segunda representação encaminhada pela Brasil Telecom à Comissão de Valores Mobiliários (CVM) em 21 de março de 2006, em relação aos abusos da gestão Opportunity no comando da companhia. São pelo menos 10 acusações graves de fraude, conflito de interesse, desvios de recursos e quebra de dever fiduciário. Entre elas, pagamentos indiscriminados de mais de R$ 50 milhões a advogados com recursos da BrT em causas do interesse apenas do Opportunity, operações suspeitas envolvendo o iBest e iG, entre outras.

(4) An investigation into aspects of the second complaint by BrT and the CVM, dated March 21, 2006 dealt with abuses by Opportunity management in running the company. It contains at least ten grave accusations of fraud, conflict of interest, misappropriation of funds and breach of fiduciary duty, among them, payments of more than R$50 million out of BrT funds lawyers working on issues of exclusive interest to Opportunity, as well as suspicious transactions involving iBest and iG, among others.

Does that mean that iG’s news portal is a preview of what the new IstoÉ will look like?

5) Em maio de 2004, fundos de pensão e a Telecom Italia entraram com representações junto à CVM questionando os critérios de compra do iG, mas até hoje não houve manifestação do órgão.

[signed] Rubens Glasberg

Well, there you have it, pra inglês ver. I merely translate. But thank you for that compendium for my notes.

Those do seem like long delays, but it might be interesting to compare them to the normal course of disciplinary and enforcement actions, just to have a benchmark for comparison.

Appendix: The Original Dantas Dossier Dustup (May 2006)

The report from the newsroom at Terra, from May 16, 2006, on the Veja report in question:

A Polícia Federal (PF) instaurou, na segunda-feira, um inquérito policial para apurar as denúncias contidas na reportagem “A Guerra nos Porões”, publicada na edição desta semana da revista Veja que envolvem. As informações envolvem o presidente Luiz Inácio Lula da Silva e várias autoridades do governo, entre eles, o o diretor-geral da PF, delegado Paulo Fernando da Costa Lacerda.

The federal police (PF) launched an investigation on Monday into the accusations contained in the article “War in the Torture Dungeons,” published in this week’s Veja magazine. The statements in question involve the president of Brazil and other government officials, including the head of the federal police Paulo Lacerda.

Porão is a loaded term, I think, recalling the torture cellars of the bad old days.

A reportagem de Veja afirma que o banqueiro Daniel Dantas denunciou que foi perseguido no governo Lula por não aceitar “pedidos de propina” e afirmou que membros do governo, incluindo o presidente, têm contas secretas no exterior. As informações estariam em documento levado pelo senador Arthur Virgílio, do PSDB, à CPI dos Bingos.

The report in Veja magazine states that banker Daniel Dantas claims he was persecuted by the Lula government because he refused “requests for bribes” and stated that members of the government, including the president, have secret accounts abroad. The information was allegedly contained in a document delivered by Arthur Virgilio (PSDB) to the CPI of Bingos.

Bingos are a pillar of the underground, er, aleatory leisure activities industry. They pay off pols and cops. They are illegal, but operate openly. This is a bingo in the Southern Zone of São Paulo:

I remember my first visit to São Paulo, during which bingos were ostentatiously raided and shut down. They reopened within two or three days, and have boomed ever since.

The CPI of Bingos generated lots of sound and fury. An aide to the minister of the Casa Civil was accused of “extorting” a bingo operator for “irregular contributions” to the Workers Party (PT) campaign coffers.

The meeting was recorded on hidden cameras in an alleged entrapment scheme by the bingo and bicho banker. As the Estadão noted the other day, no one has been found guilty because the prosecutors say “it is difficult to find evidence of wrongdoing.” A Boston-area lottery technology firm called GTech was involved in some way.

Magalhães deplored “impunity” and “cover-up” in the affair in a speech calling for the purification of the nation on the floor of the Senate the other day. Magalhães was indicted in 2002 on charges of wiretapping political adversaries in Bahia. Massively. He got off and kept his seat. How did that happen, anyway?

Weird shit. Very, very reminiscent of the Ahumada affair in Mexico, in many ways. Howard Hunt died last week, by the way. Allegedly.

O documento teria sido escrito por advogados de Daniel Dantas e teria sido repassado à Justiça de Nova York, onde o banqueiro está sendo processado pelo Citigroup por fraude e negligência. Ainda segundo a Veja, além do presidente Lula, os ex-ministros José Dirceu, da Casa Civil, Antonio Palocci, da Fazenda, Luiz Gushiken e o atual titular da Justiça, Márcio Thomaz Bastos teriam contas no exterior.

The document was allegedly written by attorneys for Daniel Dantas and was handed over to a New York court, where the banker was being sued by Citigroup for fraud and negligence. Again, according to Veja, besides Lula, former ministers Zé Dirceu, Antonio Palocci, Luiz Gushiken and the current Minister of Justice also had secret foreign accounts.

I should see if I can find that filing on the court Web site.

A reportagem provocou reação exasperada do presidente Lula, que disse que Veja mentia. “Vamos ser francos, a Veja tem alguns jornalistas que estão merecendo o prêmio Nobel de irresponsabilidade. Eu só posso considerar isso um crime praticado por um jornalista ou por uma revista. Eu não posso comparar isso a jornalismo,” disse o presidente direto de Viena, onde participava de encontro entre governantes da União Européia e Mercosul.

The report drew an exasperated response from the President, who said that the magazine was lying. “Let us be frank about this. There are journalists out there who are bucking for a Nobel Prize in irresponsibility. I cannot help but thing that when a journalist or magazine does this, they are perpetrating a crime. I can see nothing about it that resembles journalism,” said the president, direct from Vienna, where he was taking part in a meeting between Mercosul and EU heads of state.

O inquérito da Polícia Federal verificará as denúncias apresentadas contra o diretor e a autenticidade do dossiê apresentado pela revista e sua origem.

The PF inquiry will check on the accusations made against the bank director and the authenticity and origin of the dossier presented by the magazine.

A investigação será comandada pelo delegado Disney Rosseti. Lacerda já colocou à disposição da equipe de investigação seu sigilo bancário tanto no Brasil quanto no exterior. A PF deve pedir explicações a todos os envolvidos no caso.


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