Business · Companies · 1 hr ago
Brazilian regulator fines former Petrobras executive over Pasadena deal
Brazil's securities regulator fined Nestor Cerveró 16.1 million reais and barred him from company board roles for 15 years.
Cerveró was Petrobras's international director when the state-controlled oil company bought part of a refinery in Pasadena, Texas, in 2006.
The deal involved buying half of the Pasadena refinery for US$189 million, along with a stake in a related trading company.
The regulator found that Cerveró abused his authority and broke his duty of loyalty in the purchase.
Cerveró admitted receiving bribes and made a cooperation agreement with federal prosecutors; the regulator said the bribe money should have reduced the deal's price for Petrobras.
The ruling was unanimous, while a case against another accused executive ended after his death and allegations against other former officials had expired under time limits.
Brazil’s securities regulator fined former Petrobras executive Nestor Cerveró R$16,122,750 over the 2006 purchase of the Pasadena refinery.
The CVM also barred him from serving as an administrator or fiscal council member at a publicly traded company for 15 years.
The regulator said Cerveró breached his duty of loyalty and abused his power in the deal.
The CVM cleared or dismissed cases against 10 other former executives and board members, including Dilma Rousseff; reports differ on whether those cases ended because of insufficient evidence or prescription.
Cerveró’s defense argued that the case was time-barred and that the deal did not cause effective harm to Petrobras.
- Who
- The CVM fined former Petrobras international-area director Nestor Cerveró.
- What
- He was fined R$16,122,750 and barred from certain roles at publicly traded companies for 15 years over the Pasadena refinery deal.
- When
- The ruling was made on Tuesday, October 27, 2026.
- Where
- The deal concerned the Pasadena refinery in the United States.
- Why
- The CVM said Cerveró abused his power and breached his duty of loyalty in the purchase.
CVM prosecution
Cerveró’s defense
Alleged conduct
CVM prosecution
The accusation said Cerveró and Paulo Roberto Costa had decisive influence over the approval process and withheld relevant information.
Cerveró’s defense
Cerveró’s defense said the case was time-barred and that his cooperation agreement with prosecutors prevented further sanctions.
Impact of the deal
CVM prosecution
The regulator’s case said the conduct was against Petrobras’s interests; a CVM director said bribes should have been reflected as a lower purchase price.
Cerveró’s defense
The defense argued there was no effective damage to Petrobras and that the refinery’s price was within market parameters.
Petrobras approved the purchase of interests in the Pasadena refinery and a related trading company.
The CVM opened an administrative investigation based on information from Petrobras and Operation Car Wash.
The administrative investigation was split into separate proceedings.
The CVM fined Cerveró and imposed a 15-year ban from certain roles at publicly traded companies.
- Fine
- R$16,122,750
- Ban
- 15 years
- Refinery
- Pasadena, United States
- Deal year
- 2006
- Investigation
- CVM Administrative Inquiry 14/2014
3 sources
What people are saying
A fraud scheme is set up precisely to be concealed
The receipt of bribes is scandalously illegal