Sao Paulo civil police formally accused two Goldman Sachs executives, Felipe Acosta and Natan Lima Reinig, of fraud. The accusation stems from a dispute with minority shareholders of Oncoclinicas, a Brazilian cancer treatment group Goldman took public five years ago.
Police allege the bank concealed the ownership structure and a US investment fund's stake. This concealment, police state, should have triggered a mandatory tender offer for minority investors. Police further allege this caused financial losses to those shareholders.
Goldman Sachs calls the allegations "without merit," stating the bank acted appropriately. Public prosecutors will now decide whether to pursue formal charges.