Brazilian Public Ministry Denies Genial Investimentos’ Involvement in Carbono Oculto Operation

By Brazil Stock Guide – The Public Ministry (MP) has denied any direct involvement of Genial Investimentos (GENI3.SA) in the ongoing Carbono Oculto operation, which is investigating billions of dollars in alleged money laundering activities tied to the fuel sector. According to the MP, the brokerage is considered a “third party in good faith,” with its role limited to providing information about the Radford Fund, a key target in the investigation.

Genial, in a statement issued on Thursday (Sept. 4), clarified that it only provided data about the fund as part of its legal obligations. The Radford Fundo de Investimento Multimercado Crédito Privado, a closed-end fund with a single investor, was one of approximately 40 entities named in the investigation. Created in July 2024, the fund had a net worth of approximately R$ 170 million (USD 33.5 million) at the time.

The brokerage took over the management of the Radford Fund in August 2024 and immediately conducted thorough due diligence on the investor and assets involved. As part of its compliance efforts, Genial froze the fund’s assets and renounced its management role, keeping only temporary custody until a new manager could be appointed.

Genial Investimentos emphasized that it has fully adhered to all regulatory procedures and corporate governance standards. “The company rejects any implication of involvement in illicit activities. Our operations continue unaffected and in strict compliance with legal and ethical standards,” the statement said.

The Carbono Oculto operation, which spans São Paulo and nine other Brazilian states, is targeting financial networks used for asset protection linked to organized crime, particularly the First Capital Command (PCC). Approximately 40 financial vehicles were identified as part of the operation, with some firms, such as Reag and Trustee DTVM, facing search and seizure orders. However, Genial’s involvement remains limited to providing information, and no formal investigation or preventative measures have been taken against the brokerage.