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Postalis Files Complaint Against BNY Mellon with Brazil and the United States

Postalis Files Complaint Against BNY Mellon with Brazil and the United States
Velma Anne Ruth, M.Ed. - Wed Aug 30, 2017 @ 12:26PM
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Press Release

August 30, 2017

Postalis Files Complaint Against BNY Mellon with Brazil and the United States

Brasilia.—Christian Perillier Schneider, Chief Financial Officer of Postalis, the pension fund for 130,000 postal workers in Brazil, announced today that Postalis filed a complaint against BNY Mellon with governments of Brazil and United States accusing BNY Mellon of fraud and violating the Guidelines for Multinational Enterprises of the Organization for Economic Cooperation and Development (“OECD”). Postalis was joined in its complaint by two organizations representing postal workers of Brazil, Sindicato dos Trabalhadores na Empresa Brasileira de Correios e Telegrafo no Estado do Tocantins, and FINDECT. Postalis is represented by the Law Office of Bart S. Fisher.

OECD Guidelines provide principles and standards for responsible business conduct, and are the only multilaterally endorsed and comprehensive code that governments are committed to promoting.

BNY Mellon acted as fiduciary administrator and fund manager for Postalis, which suffered $1.5 billion USD in losses from 2011 through 2016, largely as a result of Mellon’s activities, Postalis states in its complaint.

“Mellon failed to carry out proper due diligence, failed to make proper disclosures to Postalis about investments in its pension funds, violated strict criteria in the fund for investments, did not have adequate controls in place to combat fraud and improper activities, and made serious misrepresentations to Postalis,” said Mr. Schneider. “These fraudulent activities injured participants in Postalis, the postal workers of Brazil and their families,” Schneider said.

“We believe that this complaint can offer Postalis a chance to resolve our differences with Mellon and provide a brighter future for the postal workers of Brazil,” Schneider said.

Jose Rivaldo da Silva, Secretary General of FINDECT, and Jose Aparecido Rufino, Secretary General of the Sindicato dos Trabalhadores na Empresa Brasileira de Correios e Telegrafo no Estado do Tocantins, stated: “BNY Mellon breached its fiduciary duty by fraudulently allowing our pension funds to be drained. We are prepared to make our views known through public protests in Brazil and through other means. This is not just a matter of money; it is a matter of social justice.”

Contacts:

Bart S. Fisher

Managing Partner

Law Office of Bart S. Fisher

Washington, DC

Telephone: 202 659 2979 (office)

202 746 7089

Jose Aparecido Rufino

Sindicato dos Trabalhadores na Empresa Brasilierade Correios

e Telegrafo no Estado do Tocantins

(63) 8459-8041/9978

Jose Rivaldo da Silva

Secretary General, FINDECT

(61) 3323 8810

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