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Brazilian millionaire Eike Batista gets 8 years in jail for insider trading

Christian Fernsby |
Brazilian business tycoon Eike Batista was sentenced to eight years and seven months of prison because of insider trading and market manipulation.

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In addition to the jail time, the sentence establishes a fine of 31.5 million reals (7.6 million U.S. dollars), three times the profit Batista reaped with the operations where he had access to privileged information.

Batista must also pay compensations to investors amounting to 82.8 million reals (20 million dollars) plus interest. The decision can still be overturned, as Batista can appeal. He can remain out of prison while the case is judged by the appeals court.

The conviction is related to Batista's naval construction company OSX, one of the many businesses making up Batista's EBX Group.

According to the prosecution, OSX was about to publicize a report which would make the company lose significant market value. Having had access to privileged information, Batista had sold high nine million stocks of OSX before the report was published, thus having undue advantage over other shareholders.

Besides, he also profited from having access to the information that several of the oil fields operated by OGX, the EBX Group's oil company, were duds, which would impact OSX that was in charge of building OGX's platforms.

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