JBS Chairman charged with crimes against the financial system.

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.