As criminal case against principals of Brookfield Asset Management [NYSE: BAM] Brazilian subsidiary proceeds, Brookfield ramps up investments in Brazil, says report by UNITE HERE

TORONTO--()--A new report by UNITE HERE, Brookfield in Brazil: An investor’s guide to ongoing bribery investigations looks at the ongoing civil and criminal cases in Sao Paulo involving a Brazilian subsidiary of real estate and private equity manager Brookfield Asset Management [NYSE: BAM, TSE: BAM.A]. The report is available at www.PEcloserlook.org.

Brookfield [BAM] is in the process of marketing a $7 billion real estate fund, Brookfield Strategic Real Estate Partners II, and a $3.5 billion private equity fund, Brookfield Capital Partners IV.

Both funds are expected to invest in Brazil. Brookfield’s CFO in April stated that the real estate fund, Brookfield Strategic Real Estate Partners II, would invest as much as $1 billion in Brazil.

In 2013, the São Paulo State Prosecutor filed civil and criminal complaints against the principals of Brookfield Gestao de Empreendimentos, Brookfield’s retail real estate subsidiary in Brazil, accusing them of bribing local officials to attain construction permits and other loopholes in the expansion of multiple São Paulo shopping malls. Brookfield has denied the charges.

While there has been limited North American media coverage since The Wall Street Journal first reported on the cases in 2013, the criminal case against the principals of Brookfield Gestao Empreendimentos has proceeded.

In the United States, Brookfield Asset Management disclosed in the 3rd quarter of 2013 that it was under investigation by the Securities and Exchange Commission and by the US Department of Justice for potential violation of the Foreign Corrupt Practices Act (FCPA).

In October 2014, the judge in the Sao Paulo criminal case rejected defendants’ requests for summary acquittal, allowing the case to proceed to a hearing. The most recent hearing in the case was set for May 13, 2015.

Report available at www.PEcloserlook.org.

Contacts

UNITE HERE
Jim Baker, 312-933-0230
jbaker@unitehere.org

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Release Summary

A new report by UNITE HERE looks at the ongoing civil and criminal cases involving a Brazilian subsidiary of real estate and private equity manager Brookfield Asset Management [NYSE: BAM, TSE: BAM.A]

UNITE HERE