SAO PAULO (AP) — Brazil-Retail-Fraud
The former CEO of Brazilian retail giant Americanas, Miguel Gutierrez, was arrested in Madrid on Friday, accused of participating in a 25 billion reais ($4.5 billion) fraud scheme.
Brazil’s Federal Police added his name to Interpol’s red alert list after finding that the company had falsified financial results to inflate cash flow and artificially inflate the company’s shares. Former executives committed fraud by advancing payments to suppliers through loans, engaging in market manipulation, insider trading, criminal associations and money laundering, according to a statement from investigators.
The investigation began in January 2023 after Gutierrez’s successor took over as CEO and quickly revealed a cash shortfall of 20 billion reais ($3.6 billion).
Gutierrez’s lawyer told local press that his client has cooperated with authorities and denies any involvement in the fraud scheme.
Gutierrez, who also holds Spanish nationality, joined Americanas in 1993 and held various positions, gaining the trust of stakeholders Carlos Alberto Sicupira, Marcel Telles and Jorge Paulo Lemann – a multi-billionaire and Brazil’s second richest person.
Federal prosecutors say the company’s board of directors cooperated with the investigation by providing information about the fraud.
Brazil’s federal government has not yet received an extradition request for Gutierrez from the court. Brazil signed an extradition treaty with Spain in 1988, which stipulates that each country may refuse to extradite its own nationals. The Spanish National Police have neither confirmed nor denied the arrest.
On Thursday, Brazil’s federal police executed 15 arrest warrants and search and seizure warrants against other former Americanas executives in Rio de Janeiro and seized their assets. Lemann, Sicupira and Telles were not involved in the police raid.
