Case Summary: Petrobras Corruption Scandal

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SUMMARY – Petrobras corruption scandal
Petrobras is an oil based company located in Brazil. The case encompasses about the bribery scam which involved Petrobras the giant oil based company. On April 2014 Petrobras had to adjust their financial statement and when the statement was released the company faced heavy losses because of corruption of an estimated losses of 6.2billion$. Investors were now losing hopes on Petrobras and this was a bad news for Petrobras once considered one of the top listed oil company because of its huge offshore reserves , Petrobras is reeling from allegations that former executives and contractors conspired with politicians to extract kickbacks and bribes from the company. Petrobras tried to keep the scam allegation
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While money in HSBC accounts does not show any wrongdoing, the bank has continuously fined for not reporting suspicious transactions, and in 2012 they paid a $1.9 billion settlement for facilitating money laundering.
IMMEDIATE CONSEQUENCES
1. Petrobras scam was a monster it destabilized the country political system because all the political leaders were involved into the scam and they were bribed with 2-3% scam bribe money.
2. Helped the tilt economy into recession and left 1000’s of people unemployed because it was one of the leading oil companies as it had huge oil shore reserve and once the company was caught in the scam it tilted the whole economy and faced recession 3. Petrobras told investors during the release of its 2014 financial statement that it estimated losses directly related to vast corruption scandal at the company at R$6.2bn.brazil government has deep deficit federal help is not on the way. But later on when the final financial statement was released they faced a loss of 44.6billion because of overcoats and huge expenses.so now the investors started losing hopes in the

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