Brazil opens criminal case over Trump's hotel

[Judi Lynn]

Source: Reuters

15:45, 02.11.2016





Brazilian prosecutor's office has opened a criminal investigation into investments made by two state pension funds in a luxury Rio de Janeiro hotel that is part of the Trump franchise, Reuters reported.

The pension fund for state IT firm Serpro and the Igeprev fund for employees of Tocantins state have invested 130 million reais ($40 million) in the developer which built Trump’s hotel.

“Investing amounts of such size, for these (relatively small) pension funds, breaks principles for diversification and liquidity,” a federal prosecutor in Brasilia Anselmo Lopes said in a document.

He noted that it was necessary to verify if the favoritism shown by the pension funds towards LSH Barra Empreendimentos Imobiliários SA and The Trump Organization was due to illicit payments and bribes.




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[Judi Lynn]

1. Brazil Prosecutor Investigates Funds' Investment in Trump Hotel Rio

Brazil Prosecutor Investigates Funds' Investment in Trump Hotel Rio
Nov 2 2016, 7:33 am ET

by Reuters

A Brazilian prosecutor has opened a criminal investigation into investments made by two state pension funds in a luxury Rio de Janeiro hotel that is part of the Trump franchise, according to a court filing reviewed by Reuters on Tuesday.

The $40 million investment by the two small funds in the hotel's developer "required investigation" due to its size, structure and high level of risk, Anselmo Lopes, a federal prosecutor in Brasilia, said in the document dated October 21 that opened the inquiry.

Lopes said the pension fund for state IT firm Serpro and the Igeprev fund for employees of Tocantins state invested the money in the developer, LSH Barra Empreendimentos Imobiliários, which built the Trump Hotel Rio de Janeiro.

"Investing amounts of such size, for these (relatively small) pension funds, breaks principles for diversification and liquidity," Lopes said in the document.

More:
http://www.nbcnews.com/business/business-news/brazil-prosecutor-investigates-funds-investment-trump-hotel-rio-n676721

[Judi Lynn]

2. Donald Trump Hotel Tied To Criminal Investigation In Brazil

Donald Trump Hotel Tied To Criminal Investigation In Brazil

Government investments into the hotel are under investigation over their size, structure and risk.

 11/01/2016 09:21 pm ET




BRASILIA - A Brazilian prosecutor has opened a criminal investigation into investments made by two state pension funds in a luxury Rio de Janeiro hotel that is part of the Trump franchise, according to a court filing reviewed by Reuters on Tuesday.

The 130 million reais ($40 million) investment by the two small funds in the hotel’s developer “required investigation” due to its size, structure and high level of risk, Anselmo Lopes, a federal prosecutor in Brasilia, said in the document dated Oct. 21 that opened the inquiry.

. . .

The investigation is part of a wider probe into fraud at Brazilian state pension funds in which bribes were allegedly paid to secure investments.

. . .

Prosecutor Lopes last week also said the Trump Organization may have benefited “suspiciously” from a massive redevelopment of Rio de Janeiro’s port, where it plans to build a series of office towers. Lopes provided no proof of his suspicions, and did not elaborate on what he meant.

http://www.huffingtonpost.com/entry/trump-hotel-criminal-brazil_us_58193dc2e4b0f96eba96cfe5?section=us_politics