UPDATE 2-Bradesco CEO to stand trial over tax plot in Brazil
(Adds Safras statement, Bradesco shares)
BRASILIA, July 28 (Reuters) - The chief executive of Bradesco SA, Brazil's No. 2 private-sector bank, will stand trial for trying to influence a tax appeal board, a court representative said on Thursday.
Prosecutors told a news conference they charged Luiz Carlos Trabuco and three other Bradesco executives with plotting to avoid a three billion reais ($914 million) tax fine.
"The bank agreed to participate in a criminal scheme," Prosecutor Frederico Paiva said.
Bradesco said in a statement it was convinced nothing illegal had taken place and planned to present its arguments in court in a timely manner.
Prosecutors cannot force Trabuco from his position.
Bradesco shares sank 4.45 percent on Thursday after the bank missed estimates for second-quarter profit and announced a grimmer outlook for loan-loss provisions.
Overall, 10 people have been charged in the case, which is part of a larger operation known as "Zealots" that is investigating kickbacks by companies through lobbyists.
Officials at CARF, a government body that hears appeals on tax disputes, have been accused of soliciting bribes in exchange for favorable settlements. Continuación...