The São Paulo judiciary has placed restrictions on the sale of property belonging to former Itaú director Alexsandro Broedel Lopes, following allegations of fraud made against him by the bank. This restriction is part of an emergency ruling aimed at preserving potential assets for future compensatory claims, as the bank seeks to reclaim R$ 3.35 million (approximately USD 685,000) from Broedel.
Judge Larissa Gaspar Tunala, presiding over the case, expressed concerns over Broedel's "delicate financial situation," observing his residence outside Brazil (he currently lives in Madrid) and indicating it complicates matters related to financial restitution should it become necessary. The ruling to register this restriction against Broedel's property implies significant legal ramifications stemming from the allegations made by Itaú.
Broedel, who is poised to take on the role of Senior Vice President at Santander and is expected to assume the position of Chief Accounting Officer (CAO) later this year, has contested the fraud claims. The accusations suggest serious misconduct during his tenure as Chief Financial Officer (CFO) at Itaú, including failing to disclose outside business engagements and engaging in conflicts of interest.
Specifically, the bank claims Broedel entered agreements with consulting firms—receiving R$ 10.455 million over several years for consultancy services purportedly rendered during his directorship. Itaú alleges Broedel set up these consulting activities with partner Eliseu Martins, to streamline payments through third parties, effectively concealing improper financial transactions.
While Broedel has vigorously denied any wrongdoing, asserting all his actions were transparent and duly acknowledged, the bank's legal pursuit has escalated, drawing the attention of São Paulo's Public Prosecutor's Office. The office has initiated criminal investigations against Broedel, as reported by multiple sources including the Financial Times.
"Mr. Broedel is a highly respected executive who is committed to addressing these allegations rigorously through the legal process. We are currently monitoring developments closely," said a spokesperson from Santander.
According to the allegations made by Itaú, Broedel is accused of conducting consulting engagements outside of his role as CFO—a position he held for several years prior to resigning to join Santander. The bank claims these actions violated company policies and applicable laws, raising ethical concerns about self-dealing practices.
Broedel’s press representatives have countered the narrative of fraud, arguing the consulting services provided by the mentioned firm were longstanding arrangements, having predated his involvement with Itaú. They contended the services were widely used within the bank, endorsed by multiple departments, and refuted the claims of undisclosed earnings.
These developments come on the heels of Broedel's resignation from Itaú last July, after which he accepted the CAO position at Santander, placing him at the forefront of key global accounting decisions for the bank.
Despite Broedel's current separation from Itaú, the legal actions surrounding his past professional conduct remain contentious. The São Paulo court's judgment indicates potential challenges Broedel may face as he tries to navigate his new role at Santander amid the backlash from the Itaú accusations.
Broedel’s upcoming appointment had initially been scheduled for March 2025 but was reportedly delayed until June due to reasons unrelated to the fraud allegations, as clarified by Santander’s Executive Chair Ana Botín, during the bank's recent earnings call.
The broader consequences of this case could reach beyond Broedel, highlighting the need for stringent oversight within financial institutions and raising pressing questions about accountability for executives. A financial institution must maintain integrity within its ranks to preserve trust from stakeholders and regulators.
While Broedel continues to fight the allegations, the consequences of this case are likely to serve as cautionary tales for current and future executives about the importance of compliance with both internal regulations and external legal frameworks.