Brazil Regulator Bans Ex-Sadia CFO

Sadia’s former CFO Adriano Ferreira was barred by the Brazilian CVM regulator from managing public companies for 3 years, and 9 board members were fined a total of BRL2.6m following an investigation into 2008 derivative losses, the CVM says. Sadia, which merged in 2009 with longtime competitor Perdigao to form Brasil Foods, racked up more than BRL2.5bn in derivative losses as the BRL sank following the collapse of Lehman at the start of the global credit crisis. The CVM found that Ferreira used derivatives in ways inconsistent with company policy, and the former board members were punished for not having a system in place to avoid such irregularities. The company fired Ferreira in September 2008. The former Sadia executive and board members can appeal CVM’s decision.