April 4, 2018 / 1:31 AM / a year ago

Brazil prosecutors sue pension funds over investment losses

BRASILIA, April 3 (Reuters) - Brazilian authorities said on Tuesday they had filed lawsuits against 17 people and two companies over losses suffered when the Petrobras employee pension funds and the Caixa Economica Federal invested in a special fund without due diligence.

The lawsuit is seeking 219 million reais ($65.55 million) in compensation, which authorities said is three times the losses caused by the poor investments.

Petros did not immediately respond to a request for comment on the lawsuit. Caixa Economica’s pension fund Funcef declined to comment.

The special fund, called FIP was created in 2010 to invest in a vehicle called CBTD, which in turn was created to acquire Brazilian consumer electronics maker IGB Eletronica, formerly Gradiente Eletronica SA, and now under bankruptcy protection.

The fund’s purpose was to pay off IGB Eletronica’s liabilities.

According to federal prosecutors, the Petrobras pension fund Petros and Funcef made a prior deal with CBTD to invest in it without performing required due diligence on the investment of about 17 million reais each.

Among those named in the lawsuit are former Funcef President Guilherme Lacerda and Petros CEO Wagner Pinheiro. ($1 = 3.3409 reais) (Reporting by Ricardo Brito; Writing by Alexandra Alper; Editing by Lisa Shumaker and Grant McCool)

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