The Public Prosecutor’s Office in the Federal District filed an appeal to try to reverse the decision that determined the reduction of the R$10.3 billion fine from J&F’s leniency agreement. The decision ordering the fine to be recalculated was signed by judge Antonio Claudio Macedo da Silva, from the 10th Federal Criminal Court of the Federal District, who considered that the company suffered coercion and pressure from the Public Ministry.
In the appeal, presented on Tuesday, 16, the agency contests the reduction of the fine. The DF Attorney’s Office states that the company’s attempt to reduce the agreed value while maintaining the benefits obtained, such as immunity against civil and criminal actions, illicitly breaks the negotiating balance. The case is being processed in secrecy.
The Public Prosecutor’s Office also argues that the partial review of the leniency agreement is prohibited by law. According to the DF Attorney’s Office, the only possible form of review would be to completely undo the agreement – with the loss of all criminal and civil benefits -, and not the creation of a more advantageous “third agreement” for the company through the courts.
The body states that there was a strategic and voluntary choice by the company to sign the agreement to reduce legal risk and ensure the healthy continuity of its activities. It also argues that, even if the alleged coercion were considered, the deadline to annul the legal transaction for this reason would have expired on June 5, 2021 – four years after the signing of the agreement.
The J&F group committed to paying R$10.3 billion over 25 years to close investigations into operations Greenfield, Sepsis, Cui Bono, Bullish and Carne Fraca.
The exact amount to be deducted from the settlement will be calculated in the process at the end of the appeals, if the decision is upheld. Judge Antonio Claudio determined that the new calculation takes into account the group’s revenue in Brazil, excluding from the account profits related to business outside the country, and discounts amounts paid by the company and its affiliates to the United States Department of Justice “due to the same facts” (US$ 128 million).
Continues after advertising
The Federal Public Ministry claims that the calculation of the fine took into account the group’s global revenue to adapt the sanction and reimbursement proposal to the actual payment capacity, including allowing reimbursement to injured pension funds.
J&F claims that the calculation was abusive. The judge recognized the risk of “virtual corporate annihilation” and bankruptcy by complying with the agreement. The Public Prosecutor’s Office in DF contests and highlights that the fine was divided over 25 years.
J&F estimates that the fine will be reduced to around R$1 billion. But, since 2017, when it closed the agreement, the company has paid R$2.9 billion.
Continues after advertising
As shown by the Estadãoif the decision is maintained, J&F may request the return of the surplus in court. The company has not yet decided whether to make the application.
A court order to force the Union to return amounts paid under a leniency agreement would be unprecedented. Jurists interviewed by the report consider the scenario unlikely.
