Brazil's federal prosecutors have initiated an investigation into alleged fund diversion by a former senior executive at Itau Unibanco, who is poised to assume a crucial role at Spanish bank Santander [RIC:SOVBAN.UL] in the near future.
Itau, Latin America's largest bank, has accused its ex-Chief Financial Officer, Alexsandro Broedel Lopes, of misappropriating funds during his tenure, as disclosed in a filing released in December. Subsequently, the bank filed a lawsuit against Broedel to claim damages.
Allegedly, Itau claims that their former executive, who joined Santander last year, violated internal policies by engaging in irregular payments for consultancy services.
Following an internal investigation lasting several months, Itau alleged that Broedel was involved in improper transactions exceeding 4.86 million reais ($830,000) between 2019 and 2024.
Broedel's representatives countered in a statement declaring his innocence and questioning the timing of suspicions, which arose after he left his position to join one of Itau's major rivals on a global scale.
A spokesperson for Santander noted that Broedel, a respected senior executive who served as Itau CFO until July, is scheduled to assume the role of chief accounting officer later this year, with the bank closely monitoring developments.
The federal prosecutors' office in Sao Paulo declined to comment on the sealed case.
In a move tied to the lawsuit against Broedel, Itau sought a court order to note the pending proceedings against him in the property deed of a house valued at nearly $2 million that he is attempting to sell. This action aims to secure Itau's access to funds from the sale in the event of a favorable outcome.
On Thursday, a Brazilian judge granted the request.
According to Broedel’s representative, the decision to sell his house was made due to his relocation to Spain.