Brazil's CVM to prosecute Cosan's owner for insider trading
Jun 27, 2013 - Brazilian securities exchange commission CVM will prosecute on July 9 the founder and owner of local sugar and ethanol group Cosan Ltd (NYSE:CZZ, SAO:CSAN3), Rubens Ometto, for alleged insider trading.
Ometto is accused of using insider information in the stock negotiations before the announcement of the company's listing on the New York Stock Exchange (NYSE).
According to CVM, Ometto negotiated the trading of shares of Cosan (SAO:CSAN3) during the period prior to their market disclosure, on June 25, 2007, in a material fact announcing the group's reorganisation plan. The document allegedly referred to the creation of Cosan Ltd, which currently controls the Cosan group. The list of defendants in the CVM process also includes Aguassanta Holdings, which is part of Cosan Ltd.