Brazilian police accuse Goldman Sachs employees of fraud

São Paulo civil police have formally named two Goldman Sachs The Goldman Sachs Group, Inc. ↗ 3.56% employees as suspects in an alleged fraud connected to a shareholder dispute over cancer treatment company Oncoclinicas, according to a police document filed with the court on Monday.

The Allegations

The investigation centers on whether Goldman misrepresented ownership details about a stake in Oncoclinicas held through investment funds called Josephina I and II. According to Bloomberg, the two employees named are Felipe Guerra Acosta and Natan Lima Reinig, who allegedly participated in an effort to mislead the company, Brazilian securities regulator CVM, exchange operator B3, and investors.bloomberg

The police documents allege the executives concealed ownership details in public documents and executed transactions to transfer shares without triggering a mandatory tender offer, deceiving minority shareholders and causing them losses, Reuters reported.reuters+1

Goldman's Response

Goldman Sachs said the allegations were unfounded. "We continue to believe that we acted appropriately," the bank said in a statement. Oncoclinicas declined to comment.kelofm+1

How the Scheme Allegedly Worked

According to the police filing, Goldman is accused of revising information only when a corporate restructuring threatened to trigger a mandatory tender offer — contradicting the bank's previous statements to the market. The police allege the information was used to "convince Oncoclinicas, the CVM, B3, and shareholders that the tender offer was not required," ultimately blocking the offer to the detriment of minority shareholders.reuters+1

The case marks a notable legal challenge for Goldman Sachs in Brazil, where minority shareholder protections in tender offer situations are a closely watched area of securities law.