Brazilian judge investigated over use of cars seized from tycoon

Judge Flavio Roberto de Souza, who is presiding over the securities fraud trial of Eike Batista, is now under investigation for allegedly using luxury vehicles seized from the tycoon, the Rio de Janeiro Federal Court said.

Press photographers took pictures of De Souza on Tuesday as he arrived at the court in downtown Rio de Janeiro driving a Porsche Cayenne SUV seized from Batista.

De Souza told reporters that the Porsche “has not been used” since it was seized three weeks ago.

The judge explained that he drove the SUV to the courthouse parking lot so it could be exhibited before an auction at which other Batista assets will be sold to fund compensation for investors allegedly defrauded by the businessman.

News Web site G1 showed a letter signed on Feb. 11 by Judge De Souza and sent to transit authorities notifying them that two of Batista’s vehicles the Porsche Cayenne and a Toyota Hilux had been placed in court custody.

The first auction of Batista’s assets had been scheduled for Thursday, but it was postponed by the court on the grounds that “they are not perishable goods and do not risk imminent deterioration,” a statement said.

The indefinite delay “will guarantee the right to a full defense” for Batista, magistrate Messod Azulay, who ordered the auction suspended, said.

De Souza had ordered the seizure of a yacht, three water scooters, a boat, five automobiles, a piano, several watches, cellular phones and other Batista assets.

The tycoon is accused of profiting from insider information and spreading false information in the Sao Paulo Stock Exchange about the viability of oil company OGX, which went bankrupt in 2013.

The oil company was part of an infrastructure and energy conglomerate that made Batista the wealthiest man in Brazil and one of the richest people in the world with a fortune estimated at roughly $30 billion in 2013.

Prosecutors allege that OGX’s bankruptcy dealt $580 million in losses to minority stockholders, and also ruined part of Batista’s wealth.