Spitzer’s Help Sought in Brazilian Probe
A Brazilian prosecutor said Monday that he had asked New York State Atty. Gen. Eliot Spitzer for help in his probe of the possible overvaluation of a mobile phone company by its owner and the auditors who handled the accounting.
Telemar Norte Leste, a subsidiary of Brazil’s top telecommunications holding company Tele Norte Leste Participacoes, had until the end of Monday to provide explanations to Rio prosecutors about the purchase of its parent company’s debt-laden mobile phone concern, Oi.
Last month, Tele Norte Leste Participacoes said it was “selling” its mobile phone unit to its subsidiary for 1 real -- the equivalent of about 35 U.S. cents.
Ernst & Young, the holding company’s auditors, is involved in the prosecutor’s probe.
Rio de Janeiro state prosecutor Rodrigo Terra said he asked Spitzer, known for his recent crackdown on biased research and conflicts of interest on Wall Street, to provide advice in the case.
Spitzer’s office in New York said it was studying the request.
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