Brazil’s BTG Pactual founder to return to controlling partner group

Brazil's BTG Pactual founder to return to controlling partner group
Brazil’s BTG Pactual founder to return to controlling partner group

Banco BTG Pactual SA’s founder Andre Esteves will return to the bank’s controlling group of partners, following his acquittal of corruption charges, according to a securities filing on Friday.

Esteves was arrested in November 2015 after prosecutors accused him of trying to buy the silence of a witness involved in a bribery scheme.

He was forced to leave his CEO position and swap his controlling voting shares for preferred stock after his arrest. A Brazilian federal judge acquitted Esteves in July.

BTG also said partner Marcelo Kalim, formerly one of the bank’s largest partners after Esteves, is leaving the controlling group and his position as chairman. Kalim and former BTG partners have founded the digital startup C6Bank.

Former Brazilian Justice Minister Nelson Jobim, who is already a BTG partner and board director, will take Kalim’s position.

BTG’s controlling group, formally known as G7 Holding to refer to the previous number of partners, will now be made up of five partners: Chief Executive Roberto Sallouti, Renato Santos, Antonio Porto, Guilherme Paes and André Esteves.

BTG said in the filing that no partner will hold a stake larger than 30 percent by December 2022, without providing further information. The bank did not immediately comment on the matter.

After the corruption investigation, the bank was forced to cut jobs and shed assets. Esteves returned to the bank in April 2016, but only as senior adviser.

Chief Financial Officer João Dantas said in August that Esteves’ return to the bank would be gradual and that BTG wanted to avoid mistakes made in the past.

Source: News Agencies