Former CEO of Brazilian retail giant Americanas arrested amid multibillion fraud allegations

SAO PAULO (AP) — Brazil-Retail trade-Fraud

The former CEO of Brazilian retail giant Americanas, Miguel Gutierrez, was arrested in Madrid on Friday, accused of participating in a 25 billion reais ($4.5 billion) fraud scheme.

Brazilian federal police added his name to Interpol's red list after determining that the company's financial results were falsified to inflate cash flows and artificially increase the company's shares. Former directors committed fraud by advancing payments to suppliers through loans, engaging in market manipulation, insider trading, criminal conspiracy and money laundering, according to a statement investigators.

The investigation began in January 2023 after Gutierrez's successor took over as CEO and quickly revealed a cash deficit of 20 billion reais ($3.6 billion).

Gutierrez's lawyer told local media that his client has cooperated with authorities and denies any involvement in the fraud.

Gutierrez, who is also a Spanish citizen, joined Americanas in 1993 and held various positions, earning the trust of shareholders Carlos Alberto Sicupira, Marcel Telles and Jorge Paulo Lemann — a multi-billionaire and Brazil's second-richest person.

Federal prosecutors said the company's board of directors cooperated with the investigation by providing information about the fraudulent scheme.

The Brazilian federal government has not yet received an extradition request from the International Criminal Court (ICC). Brazil signed an extradition treaty with Spain in 1988 which stipulates that each country can refuse to extradite its own nationals. The Spanish National Police have neither confirmed nor denied Gutierrez's arrest.

On Thursday, Brazilian federal police executed 15 arrest warrants and search and seizure orders against other former Americanas directors in Rio de Janeiro and seized their assets. Lemann, Sicupira and Telles were not included in the raid.