Brazil’s Police Launches Second Phase of Probe Into Americanas

Brazil's Federal Police and federal prosecutors launched the second phase of an investigation into alleged accounting fraud at the Brazilian retailer Americanas SA on Thursday. This expansion of the probe follows initial inquiries that previously targeted the company. The investigation is examining irregularities in the company's financial statements, which have been a significant concern for investors and regulators. The second phase is expected to delve deeper into the specific transactions and individuals involved in the alleged fraud, potentially leading to further legal actions. The company has been facing scrutiny since January 2023, when it revealed a "material inconsistency" in its accounting, amounting to approximately R$20 billion (around $4 billion USD at the time). This revelation triggered a significant drop in its stock price and led to a judicial recovery process. The Federal Police stated that this new phase aims to gather more evidence and clarify the extent of the alleged fraud, which is believed to have occurred over several years. Prosecutors are reportedly examining evidence collected during the first phase, including documents and testimonies, to build a stronger case against those responsible.