By Paul Kiernan
RIO DE JANEIRO--Brazilian state-controlled energy giant
Petrobras said Monday it is under investigation by the Securities
and Exchange Commission, confirming previous reports that a
corruption probe in Brazil has extended to the U.S.
Petrobras said it received a subpoena on Friday in which U.S.
regulators requested "documents relating to an investigation of the
company by the SEC." The documents are to be sent following an
internal investigation by Brazilian law firm Trench, Rossi e
Watanabe Advogados and U.S. law firm Gibson, Dunn & Crutcher,
which Petrobras has hired to help it determine the extent of the
allegations.
Authorities in Brazil say Petrobras was at the heart of a vast
money-laundering and kickback scheme in which a "cartel" of
construction companies overcharged the oil firm for tendered
contracts and paid bribes to Petrobras executives and local
politicians. The probe has already led to several suspects,
including at least one former Petrobras executive, entering plea
deals and agreeing to repay tens of millions of dollars they
allegedly received in bribes.
Earlier this month, The Wall Street Journal and other newspapers
reported that the U.S. Justice Department and SEC had opened their
own investigations. Petrobras at the time said it was unaware of
them.
The firm has shares and corporate debt traded in New York and
owns a refinery in Texas, giving U.S. authorities jurisdiction to
prosecute it for possible violations of the Foreign Corrupt
Practices Act and other laws.
"Petrobras reiterates its commitment to answer the U.S. public
authorities with the same endeavor that it is answering the
Brazilian public authorities," the firm said in a filing with the
local securities regulator on Monday.
Write to Paul Kiernan at paul.kiernan@wsj.com
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