Brazil opens criminal case over Trump's hotel

[Judi Lynn]

1. Brazil Prosecutor Investigates Funds' Investment in Trump Hotel Rio

Brazil Prosecutor Investigates Funds' Investment in Trump Hotel Rio
Nov 2 2016, 7:33 am ET

by Reuters

A Brazilian prosecutor has opened a criminal investigation into investments made by two state pension funds in a luxury Rio de Janeiro hotel that is part of the Trump franchise, according to a court filing reviewed by Reuters on Tuesday.

The $40 million investment by the two small funds in the hotel's developer "required investigation" due to its size, structure and high level of risk, Anselmo Lopes, a federal prosecutor in Brasilia, said in the document dated October 21 that opened the inquiry.

Lopes said the pension fund for state IT firm Serpro and the Igeprev fund for employees of Tocantins state invested the money in the developer, LSH Barra Empreendimentos Imobiliários, which built the Trump Hotel Rio de Janeiro.

"Investing amounts of such size, for these (relatively small) pension funds, breaks principles for diversification and liquidity," Lopes said in the document.

More:
http://www.nbcnews.com/business/business-news/brazil-prosecutor-investigates-funds-investment-trump-hotel-rio-n676721