It’s well known that Brazil’s financial markets watchdog, CVM (the equivalent of the SEC in the US), lets a lot of people go unpunished for insider trading (just look at some suspicious activities inside Brazilian investment banks and companies… read here, here and here). Those same guys do it over and over but none of them have been punished.
But once in a while, CVM catches one little guy (“pobre coitado“) to set as an example of what not to do. And then it issues press releases in all major news vehicles to show the world that it’s a “tough” institution. That’s typical Brazil: incriminate the small guy and let the “sharks” out there play in the field.
According to the recent “bozo show” that the Brazilian Securities Commission (CVM) put in all major vehicles, it showed it imposed a fine of 200,000 reais to Guilherme Colonna Rosman, shareholder of Contax. According to the report, he was tried by the misuse of relevant information not yet disclosed to the market, in negotiations with shares of Contax .
“The CVM Board decided unanimously to apply to the accused a monetary fine in the amount of R$200,000.00,” said a note issued by the entity.
Do you want to know how much the guy made in profits? He made less than R$1,000 (about US400).
Now, do you want to know how much the sharks in major investment banks and public companies made in insider trading in the last few years? Try hundreds of millions…
Way to go, CVM! Congrats! You ARE relevant!