By Luciana Magalhaes
SÃO PAULO--The judge presiding over the criminal trial of
Brazilian businessman Eike Batista is under investigation for
allegedly driving a luxury vehicle he ordered seized from the
former tycoon, conduct that could help pressure the magistrate's
removal from the high-profile case.
An appeals court in Rio de Janeiro on Tuesday opened the probe
after local newspapers published photos of a man identified as
Federal Judge Flávio Roberto de Souza piloting a white Porsche
Cayenne through the streets of the beachside city. The Porsche had
been taken from Mr. Batista earlier this month by federal
police.
Once Brazil's richest person, Mr. Batista is on trial for
insider trading related to the financial meltdown of his oil
company, formerly named OGX Petróleo e Gás Participações S.A. He
and his attorneys have repeatedly denied wrongdoing.
Following an order by Judge de Souza, authorities this month
seized 11 vehicles from Mr. Batista, including the Porsche and a
Lamborghini Aventador, along with jewelry, a piano and a fake
Fabergé egg, as guarantees to repay investors in the event the
entrepreneur is found guilty. The cars were to be sold at auction
and the proceeds placed into escrow until the conclusion of the
trial, an action allowed under Brazilian law.
The court on Tuesday suspended two public auctions of Mr.
Batista's seized vehicles scheduled for Feb. 26 and March 9.
Judge de Souza didn't respond to a request for comment from The
Wall Street Journal about the investigation into his alleged
conduct.
In a note published Tuesday on the website of Brazilian magazine
Veja, Judge de Souza admitted driving the Porsche. He told the
magazine that the car had been stored for safekeeping in the garage
of his apartment building because there wasn't sufficient space for
all of Mr. Batista's vehicles at the federal court lot in Rio de
Janeiro.
The judge told Veja that he was returning the Porsche on Tuesday
to the federal court parking lot in preparation for auction after a
court driver was unable to perform the task. He said authorities
were aware the Porsche was parked at his building.
Authorities investigating Judge de Souza couldn't immediately
confirm whether there was a shortage of parking spaces at the
federal court lot.
Judge de Souza had already been under fire by lawyers for Mr.
Batista, who have requested the magistrate's removal from the case
for alleged partiality against their client. The lawyers claim that
the judge has given a number of press interviews in which he used
language showing a prejudice against Mr. Batista.
The spokeswoman for the appeal court said a decision on the
lawyers' motion will likely be taken next week. Two of three judges
on that panel have already voted to have Judge de Souza replaced,
she said.
In a December interview with The Wall Street Journal, Judge de
Souza denied that he acted impartially toward Mr. Batista.
A spokesperson for the appeals court couldn't say what penalties
Judge de Souza might be subject to regarding his driving Mr.
Batista's Porsche. But lawyers defending Mr. Batista say that
constitutes administrative wrongdoing, a crime that can lead a
sentence between two to 12 years.
Write to Luciana Magalhaes at Luciana.Magalhaes@dowjones.com
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