World’s richest banker Joseph Safra charged with corruption

Financier owns numerous banks and properties

Mr Safra is the second wealthiest man in Brazil (AP/Lionel Cironneau)

The world’s richest banker has been charged with corruption.*

Joseph Safra, 77, owner of the Safra group, is the latest member of the elite in Brazil to be embroiled in a corruption scandal.

The financier, who owns London’s Gherkin tower, is worth an estimated $18.3 billion, according to Fortune, making him the second richest man in Brazil.

Mr Safra is alleged to have known about plans by his senior employees to bribe tax officials R$15.3m (£2.9 million) in return for reducing taxes owed to the state of Brazil, which are now worth R$1.8bn.

Prosecutors also filed charges against five other people.

The prosecutors said: “The criminal intentions of the group is made clear by the various conversations and exchanges of messages cited in the indictment,” the Financial Times reported.

The charges are reportedly based on recorded telephone conversations between João Inácio Puga, a top executive at the Safra-owned Banco Safra and tax officials.

The Brazilian authorities have stated that Mr Safra was not directly involved in the alleged corruption scheme, but prosecutors said Mr Puga reported to him on the issue.

The Safra Group has denied involvement in corruption. "There have not been any improprieties by any of the businesses of The Safra Group,” said a company statement.

“No representative of the group offered any inducement to any public official and the group did not receive any benefit in the judgement of the tribunal.”

Mr Safra, born in Aleppo, Syria, made his money through a lucrative career in finance. In addition to owning Banco Safra, one of the most well-known private banks in Brazil, his family also own banks in New York and Switzerland.

The charges against him come as part of ‘Operation Zealots‘, a broader investigation into business corruption in Brazil.

Seventy-four companies across various industries and 24 individuals are being investigated. Ford Brazil is reportedly one of the companies involved in the enquiry.

The charges relate to corruption in CARF, a Finance Ministry body that can appeal tax disputes and has the power to give favourable rulings to reduce or wipe outstanding tax debts.

Prosecutors believe that Brazil could have lost R$21.9billion (£4.2billion) over 15 years to this sort of activity.

Brazil is still reeling from a corruption scandal into state-run oil company Petrobras and its links with engineering companies.

The allegations against Petrobras stem from when the current Brazilian president, Dilma Rousseff, was Chair of the company, though she has been cleared of wrongdoing.

President Rousseff herself is now facing impeachment over different allegations of corruption and manipulating economic data.

*On December 13, 2016, the charges against Mr. Safra were dismissed.

Following the decision, the J. Safra Group issued a statement: “The Federal Regional Court of the 1st Region (Federal District) has recognised that there are no grounds for prosecution against Mr Joseph Safra. The Court’s decision prevents the continuation of the action for lack of just cause and the proceeding involving Mr. Joseph Safra is now closed.”