SÃO PAULO--The Brazilian judge overseeing the investigation into alleged corruption at state-controlled oil company Petroleo Brasileiro SA on Wednesday convicted eight people of crimes related to kickbacks and bribery.

Judge Sergio Moro found former Petrobras executive Paulo Roberto Costa and currency dealer Alberto Youssef guilty of money laundering, and Mr. Costa of belonging to a criminal organization. The convictions stemmed from activities related to the construction of an oil refinery in the northeastern Brazilian state of Pernambuco.

Mr. Costa, formerly the head of the company's downstream division, was sentenced to time served plus house arrest while wearing an ankle monitor until Oct. 1, 2016. The judge reduced the sentence by six months because of Mr. Costa's cooperation with authorities. Mr. Costa still faces charges for other crimes related to the Petrobras investigation.

Mr. Youssef, who also faces more charges, was sentenced to nine years in jail, but that was reduced to three years because of his cooperation with authorities.

The sentences and convictions can be appealed. Lawyers for Mr. Costa weren't immediately available to comment and Mr. Youssef's lawyer, Rodolfo Martins, said he is evaluating the judge's decision. Both men have admitted to wrongdoing and cooperated with investigators.

Mr. Costa and Mr. Youssef are the most prominent of those convicted in the probe. Prosecutors have said they first uncovered the irregularities while investigating Mr. Youssef's money-laundering activities, when his gift of a luxury vehicle to Mr. Costa led investigators to Petrobras. Mr. Costa testified about the case before a congressional committee.

The other six were convicted of money laundering or belonging to a criminal organization or both of these crimes. The investigation is called Operation Car Wash, named after the site of some of the alleged wrongdoing.

Investigators say that Petrobras suppliers regularly inflated the price of contracts with the oil company. Petrobras executives involved in the scheme then allegedly skimmed off the extra money, keeping some for themselves and passing some on to politicians, including members of President Dilma Rousseff's Workers' Party and allied parties in Congress, according to investigators.

Ms. Rousseff and her party have denied any involvement in or knowledge of the alleged corruption.

Since the start of the probe in March 2014, four former Petrobras executives, including Mr. Costa, and at least 23 construction executives have been charged with crimes. Some have admitted wrongdoing in exchange for lesser punishment, prosecutors say, while others have denied involvement and await trial.

Write to Jeffrey T. Lewis at jeffrey.lewis@wsj.com and Rogerio Jelmayer at rogerio.jelmayer@wsj.com

Access Investor Kit for Petróleo Brasileiro SA

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=BRPETRACNOR9

Access Investor Kit for Petróleo Brasileiro SA

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=BRPETRACNPR6

Access Investor Kit for Dominion Resources, Inc.

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=US25746U1097

Access Investor Kit for Petróleo Brasileiro SA

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=US71654V4086

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

Dominion Energy (NYSE:D)
Historical Stock Chart
From Feb 2024 to Mar 2024 Click Here for more Dominion Energy Charts.
Dominion Energy (NYSE:D)
Historical Stock Chart
From Mar 2023 to Mar 2024 Click Here for more Dominion Energy Charts.