SAO PAULO, Brazil – Joesley Batista, chairman of JBS SA, was indicted for allegedly trying to circumvent Brazilian law prohibiting loans from one financial entity to its owners, according to published news reports. Joesley Batista is the brother of JBS CEO Wesley Batista. 

Joesley Batista, chairman, JBS SA.

The indictment stems from Joesley Batista’s job as head of J&F Investimentos SA, JBS’s parent company. Prosecutors said that in December 2011, Banco Rural lent 80 million reis to a pair of companies controlled by J&F. The companies deposited the money in J&F’s financial unit, which then lent the money back to Banco Rural’s parent company, Trapezio SA. Such “triangular transactions” are prohibited under Brazilian law. John Heraldo dos Santos Lima, president of Banco Rural, and several other executives also were named in the indictment.

In a statement, J&F said the company will present its defense and evidence proving Batista’s innocence.