Brazil intervenes in fraud-hit Postalis pension fund
Brazil’s pension oversight body Previc ordered a 180-day intervention in Postalis Instituto de Previdência Complementar, the pension fund for post office workers, for breaking rules on reserve requirements and investments, the regulator said on Wednesday.
Postalis, Brazil’s largest fund by number of participants, has amassed billions of reais in losses over the past decade due to risky bets and has run a deficit every year since 2011. Prosecutors in May charged eight people, including the fund’s former president, with tax fraud and money laundering.
Previc took over management of Postalis for 180 days and ordered suspension of all the fund’s executives and the freezing of their assets. A spokesman for the fund said the intervention “took us by surprise” and had no immediate comment.
