SÃ O PAULO—Three former executives from one of Brazil's largest
construction conglomerates were sentenced Monday for money
laundering and other charges for their roles in a graft ring that
targeted state-controlled Petró leo Brasileiro SA.
The sentences mark the first handed down to senior executives
from the building industry in the massive bid-rigging-and-bribery
scheme.
Dalton Avancini, 48 years old, the former president of Sã o
Paulo-based Construtora Camargo Corrê a, was convicted of
corruption, money laundering and belonging to a criminal
conspiracy.
A federal judge sentenced him to 15 years and 10 months of house
arrest as part of a plea bargain that helped the former executive
avoid prison in exchange for providing information about the
alleged scheme.
Federal Judge Sé rgio Fernando Moro handed down an identical
sentence to former Carmargo Corrê a Vice President Eduardo Leite,
49, who was convicted of the same charges and made a similar
deal.
Plea bargains have become a key tool for prosecutors in the
corruption case. So far, at least 18 cooperation agreements have
been signed as part of the investigation, according to
prosecutors.
Mr. Avancini and Mr. Leite are both candidates for probation,
which might allow them to leave their homes in exchange for good
behavior, Judge Moro said.
Camargo Corrê a former Chairman Joã o Auler, who didn't strike a
plea deal with prosecutors, was sentenced to nine years and six
months in prison. The 63-year-old is currently being held in the
southern city of Curitiba.
Lawyers for the three executives couldn't immediately be reached
for comment. In a statement, Camargo Corrê a said it has, since the
beginning of the investigation, offered to collaborate with
authorities and is also improving its corporate governance and
control systems. Petrobras has said it is a victim of the scheme
and is cooperating with authorities.
The men were arrested last November as part of Operation Car
Wash, an investigation into alleged wrongdoing by suppliers to
Petrobras. According to prosecutors, several large Brazilian
construction firms formed a cartel to drive up the prices of
Petrobras-related contracts, paying kickbacks to company insiders
and politicians who helped them skim billions of dollars from the
oil giant.
Since Operation Car Wash began in March 2014, four former
Petrobras executives and at least 23 construction executives have
been charged with crimes including corruption and money
laundering.
Some have admitted wrongdoing in exchange for lesser punishment,
prosecutors say, while others have denied involvement and await
trial. The operation has also reached some politicians, who are
under investigation.
Write to Rogerio Jelmayer at rogerio.jelmayer@wsj.com and
Luciana Magalhaes at Luciana.Magalhaes@dowjones.com
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