RIO DE JANEIRO—A former high-ranking executive at
Brazil's state-run oil firm Petroleo Brasileiro SA was sentenced to
five years in prison Tuesday, the most severe punishment yet in a
widespread corruption scandal that has rattled the country's
political and industrial elite.
Nestor Cerveró, Petrobras' former director of
international operations, was convicted of money laundering and
sentenced to five years in prison and fined 543,000 reais,
according to a federal-court decision.
Mr. Cerveró was the director of Petrobras'
international operations from 2003 to 2008 and later became the
chief financial officer at Petrobras' fuel-distribution subsidiary,
a post from which he was fired in March 2014.
Mr. Cerveró's lawyer, Edson Ribeiro, said they would
appeal the sentence "immediately." Last year, Mr.
Cerveró told a congressional committee looking into
corruption at Petrobras that he had never taken bribes and wasn't
aware of the alleged corruption scheme.
Last month, the same court convicted another former Petrobras
executive, Paulo Roberto Costa, on charges of money laundering and
corruption and sentenced him to time served plus 18 months of house
arrest. Mr. Costa had struck a deal, according to prosecutors, in
which he told what he knew of the alleged corruption scheme in
exchange for a lesser sentence.
Mssrs. Cerveró and Costa are accused by investigators
of taking part in a yearslong bribery scheme in which Petrobras
suppliers allegedly 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, allegedly including members of
President Dilma Rousseff's Workers' Party.
Ms. Rousseff and her party have denied any involvement in or
knowledge of the alleged corruption.
Some of the accused have admitted wrongdoing in exchange for
lesser punishment, according to prosecutors, while others have
denied involvement and await trial.
Write to Will Connors at william.connors@wsj.com and Luciana
Magalhaes at Luciana.Magalhaes@dowjones.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