UPDATE 2-Bradesco CEO to stand trial over tax plot in Brazil

jueves 28 de julio de 2016 18:19 GYT
 

(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...