AP NEWS

Brazil officials investigate kickback scheme

January 29, 2019

SAO PAULO (AP) — Brazilian prosecutors say they’re investigating a kickback scheme involving bank directors who allegedly accepted bribes in exchange for investments in businesses that include the now-defunct Trump-branded hotel in Rio de Janeiro.

Prosecutors on Tuesday said the scheme worked out of the Banco de Brasilia, which is controlled by the government of Brazil’s federal district.

The government-run news agency Agencia Brasil said the scheme involved the equivalent of more than $4 million, part of which benefited the Trump-branded hotel, has since been renamed LSH Lifestyle.

The Brazilian businessman licensed to use the Trump brand was placed under investigation in 2016 and the Trump Organization withdrew from the deal. There’s no indication the Trump group itself was involved in the scheme.

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