Financial

May 14 (UPI) — Just five months before Brazil’s October elections, the presidential campaign of right-wing Sen. Flávio Bolsonaro has become entangled in what authorities describe as the country’s largest recent banking fraud case.

According to reports published by Intercept Brasil, Bolsonaro negotiated a multimillion-dollar sponsorship deal to finance a film about his father, former President Jair Bolsonaro, with a banker now jailed on suspicion of leading a criminal organization involved in financial fraud.

The Brazilian news outlet released audio recordings and messages allegedly tied to negotiations between the senator and Daniel Vorcaro, owner of the collapsed Banco Master. Vorcaro is being held in pretrial detention as part of a financial and political scandal that has expanded to include Brazilian politicians and judges.

The scandal erupted after Brazil’s Federal Police intercepted Vorcaro’s phone messages, which reportedly reveal a close relationship between the two men — with Flávio Bolsonaro referring to the banker as “brother.”

In the conversations, Bolsonaro allegedly pressured Vorcaro to release payment for a sponsorship worth 134 million reais, or about $26 million, according to Brazilian outlet G1 Globo. The funds were intended for the Hollywood production of The Dark Horse, a biographical film aimed at improving Jair Bolsonaro’s public image.

In one audio recording, Flávio Bolsonaro discussed the urgency of the payments and the importance of the film project, according to Agência Brasil.

“Even though you gave us the freedom to hold you accountable, I feel uncomfortable having to ask,” the senator said in the recording. “We are at a crucial point in the movie’s production, and because many payments are still pending, everyone is tense, and I worry this could have the opposite effect from what we expected for the film.”

Authorities say the controversy extends beyond the size of the sponsorship and centers on the source of the money. Brazil’s Central Bank liquidated Banco Master after discovering an accounting shortfall estimated at between $7.6 billion and $10 billion.

Investigators allege the bank operated a scheme involving fraudulent securities sales and the theft of pension savings belonging to public-sector workers. Brazilian media reported that while retirees lost savings, members of the banker’s family purchased luxury homes in Miami and private aircraft.

Hours before the audio recordings became public, Flávio Bolsonaro denied having a business relationship with Vorcaro and dismissed the allegations as false during television interviews.

After the recordings surfaced and his voice allegedly could be heard in the conversations, the senator acknowledged contact with the banker, but argued the deal involved legitimate private sponsorship.

Bolsonaro later wrote on X that he was the victim of political persecution and said the leaked chats only showed a lawful business negotiation.

“It was a son seeking private sponsorship for a private film about his father. Zero public money,” the senator wrote, insisting he did not know the banker’s funds allegedly originated from purported fraud.

The market reaction was immediate. After publication of the recordings, the São Paulo stock exchange fell nearly 2% and the Brazilian real weakened against the U.S. dollar, reflecting investor concerns over political instability.

Recent polls show Flávio Bolsonaro statistically tied with President Luiz Inácio Lula da Silva in a potential runoff election.

Government allies have launched an offensive to capitalize on the scandal, demanding Bolsonaro’s removal from office through ethics proceedings in the Senate. According to Gazeta do Povo, lawmakers are seeking to suspend his political rights for eight years.

Those aligned with Lula also are pushing to create a congressional investigative committee into Banco Master. The proposed inquiry would seek access to Bolsonaro’s banking and tax records to trace the millions of reais allegedly negotiated in the sponsorship deal.

Left-wing parties argue the movie financing arrangement served as a front for money laundering and illicit enrichment, linking the failed bank’s expansion to political protection networks allegedly built during Jair Bolsonaro’s administration.

Prosecutor calls for leftist candidate to be jailed for five years and four months over false financial disclosures.

Peru’s public prosecutor’s office has accused leftist presidential candidate Roberto Sanchez of financial crimes, calling for him to be imprisoned for five years and four months.

The charges, unsealed on Tuesday, came hours after electoral authorities confirmed Sanchez was on track to advance to the country’s presidential run-off, scheduled for June 7.

According to the El Comercio newspaper, prosecutors allege that Sanchez, who is the candidate of the Juntos por el Peru (Together for Peru) party, filed false financial disclosures with the National Office of Electoral Processes related to campaign contributions between 2018 and 2020.

Prosecutors say Sanchez and his brother, William Sanchez, received more than 280,000 Peruvian soles ($81,720) in contributions and membership fees that were never disclosed in the party’s financial filings.

Sanchez is also accused of making false statements in administrative proceedings.

In addition to the jail term, prosecutors were also seeking a “permanent disqualification” of Sanchez from holding the office of president for the Juntos por el Peru party, according to El Comercio.

Sanchez’s lawyer rejected the accusations, telling local outlet RPP that the party’s treasurer, not Sanchez, was responsible for its financial filings.

A judge is expected to decide on May 27 whether the case will go to trial.

The charges emerged as vote counting from last month’s first-round election showed Sanchez advancing to a run-off against conservative rival Keiko Fujimori.

With 99.76 percent of ballots counted, Fujimori, the daughter of late former President Alberto Fujimori and a four-time presidential candidate, held a commanding lead with 17.17 percent of the vote.

Sanchez, running with the backing of jailed former President Pedro Castillo, stood at 12 percent, narrowly ahead of ultra-conservative former Lima Mayor Rafael Lopez Aliaga at 11.91 percent, a margin of roughly 15,000 votes.

The final result is expected by May 15.

WASHINGTON — The chair of the House Oversight Committee has sent a letter to OpenAI Chief Executive Sam Altman requesting information about potential conflicts of interest between Altman’s personal investments and his operation of the company.

The letter, sent Friday, comes amid a high-stakes legal battle currently playing out in an Oakland federal courtroom between one-time partners Altman and Elon Musk, the world’s richest man, who in 2015 co-founded the AI company best known for creating ChatGPT.

The company was first established solely as a non-profit corporation and the letter sent to Altman by Rep. James Comer (R-Ky.), the Republican chair of the Oversight committee, indicates that the committee is “investigating potential conflicts of interest involving capital from nonprofit corporations invested in startups and other for-profit companies.”

Comer has requested by May 22 a briefing from the company official responsible for oversight of potential conflicts involving company officers and directors, including Altman, as well as all documents related to conflict of interest policies and guidance for those executives.

While OpenAI was created as a non-profit designed to responsibly harness the power of the emerging artificial intelligence technology, the company created a for-profit subsidiary in 2019 and three years later released ChatGPT, which jumpstarted widespread adoption of the technology.

Musk, the chief executive of Tesla, left Open AI’s board in 2018, one year before the creation of the for-profit arm. He is arguing that Altman and another co-founder, Greg Brockman, betrayed the original mission of the non-profit organization, driven by their desire to “cash in” on the technology.

Musk added Microsoft, a significant investor in OpenAI, to the lawsuit in 2024. OpenAI is rumored to be gearing up to go public later this year or early next, and was recently valued at $852 billion.

Musk has said that he invested $38 million in the OpenAI non-profit, but he does not stand to benefit from a potential OpenAI public offering.

He created a rival company xAI in 2023 that was later folded into his company SpaceX

In the lawsuit, Musk is seeking $150 billion in damages, for Altman to be removed from the company and for the company to be fully returned to its non-profit status.

Musk’s complaint also alleges that Altman engaged in self-dealing by directing OpenAI to pursue deals with companies in which he also held a personal stake, including nuclear fusion power company Helion.

Comer’s letter cites reporting that Altman’s pursuit of a Helion deal, which is still ongoing, would come at a lofty valuation of the power-company, boosting the company’s worth, and the value of Altman’s investment.

Altman was briefly forced to step down from leadership of OpenAI in 2023 in part due to concerns about potential conflicts between his personal investments and his operation of the company, but was soon reinstated.

While the company’s board created an audit committee to investigate the potential conflicts of Altman and other officers, the findings were never disclosed.

Comer has requested that Altman turn over all documents and communication related to that audit committee.

Representatives for OpenAI did not immediately respond to requests for comment.

SEOUL, May 10 (UPI) — South Korea’s KB Financial Group unveiled a humanoid robot for senior care during AI EXPO Korea 2026 held in southern Seoul.

During the three-day event last week, KB Financial showcased the humanoid robot, named “GenP,” which was jointly developed with domestic AI company GENON.

KB Financial noted that GenP was specifically designed for senior care, as it is equipped with upgraded finger-module capabilities to perform precise movements suited for assisting elderly users.

During the exhibition, the humanoid robot carried out five demonstrations, including greeting visitors and delivering daily information, such as rehabilitation schedules.

The Seoul-based financial conglomerate said that the presentation demonstrated its transition from text-based agentic AI to physical AI geared toward engaging directly with the everyday lives of senior customers.

Next month, KB Financial’s affiliate plans to introduce an AI-powered care robot, dubbed “KeBi,” at a South Korean facility for senior citizens.

South Korea is widely regarded as having one of the world’s fastest-aging societies, as the proportion of people age 65 or older topped 20% of the population. As of the end of last year, it was 21.21%, according to the Ministry of the Interior and Safety.

“Starting with this demonstration, we plan to gradually verify the feasibility of applying physical AI to care settings. Based on those results, we will further expand our service scope and business operations,” KB Financial said in a statement.

“Going forward, we will concentrate our capabilities on realizing the future of senior care solutions, which combine advanced technology and compassionate care,” it said.

The share price of KB Financial rose 0.31% on the Seoul bourse Friday.

May 1 (UPI) — South Korea’s Financial Supervisory Service (FSS) reportedly decided Thursday to suspend the business operations of Lotte Card for 4 1/2 months over a data breach.

The financial watchdog is also reported to have finalized the disciplinary measure, including a $3.4 million penalty and a reprimand warning for its former CEO Cho Jwa-jin.

The FSS declined to confirm the reports, while Lotte Card acknowledged it.

“Imposing a business suspension over a hacking case would be an unprecedented level of sanction,” Lotte Card said in a statement.

“As follow-up procedures remain, including a resolution by the Financial Services Commission (FSC), we will fully explain our position regarding the severity of the punishment, as well as our post-incident response efforts,” it added.

Nearly 3 million Lotte Card customers had their personal information compromised last year. The state-run Personal Information Protection Commission has already imposed a $64 million fine on the firm over the incident.

Following the FSS decision, the FSC is expected to make the final call in the coming months.

In 2019, South Korea’s leading private equity company, MBK Partners, teamed up with Woori Bank to acquire a 79.8% stake in Lotte Card for about $1 billion. MBK took 59.8%, and Woori held the remaining 20%.

MBK Partners sought to sell its stake in Lotte Card in 2023 but failed to find a buyer, and a similar effort last year also yielded limited results.

Lotte Card is not publicly listed.

A former executive at Live Nation, the world’s largest live entertainment company, is suing the company, alleging that he was wrongfully terminated after he raised concerns about alleged financial misconduct and improper accounting practices.

Nicholas Rumanes alleges he was “fraudulently induced” in 2022 to leave a lucrative position as head of strategic development at a real estate investment trust to create a new role as executive vice president of development and business practice at Beverly Hills-based Live Nation.

In his new position, Rumanes said, he raised “serious and legitimate alarm” over the the company’s business practices.

As a result, he says, he was “unlawfully terminated,” according to the lawsuit filed Thursday in Los Angeles County Superior Court.

“Rumanes was, simply put, promised one job and forced to accept another. And then he was cut loose for insisting on doing that lesser job with integrity and honesty,” according to the lawsuit.

He is seeking $35 million in damages.

Representatives for Live Nation were not immediately available for comment.

The lawsuit comes a week after a federal jury in Manhattan found that Live Nation and its Ticketmaster subsidiary had operated a monopoly over major concert venues, controlling 86% of the concert market.

Rumanes’ lawsuit describes a “culture of deception” at Live Nation, saying its “basic business model was to misstate and exaggerate financial figures in efforts to solicit and secure business.”

Such practices “spanned a wide spectrum of projects in what appeared to be a company-wide pattern of financial misrepresentation and misleading disclosures,” the lawsuit states.

Rumanes says he received materials and documents that showed that the company inflated projected revenues across multiple venue development projects.

Additionally, Rumanes contends that the company violated a federal law that requires independent financial auditing and transparency and instead ran Live Nation “through a centralized, opaque structure” that enables it to “bypass oversight and internal checks and balances.”

In 2010, as a condition of the Live Nation-Ticketmaster merger, the newly formed company agreed to a consent decree with the government that prohibited the firm from threatening venues to use Ticketmaster. In 2019 the Justice Department found that the company had repeatedly breached the agreement, and it extended the decree.

Rumanes contends that he brought his concerns to the attention of the company’s management, but his warnings were “repeatedly ignored.”

April 22 (UPI) — Federal prosecutors Tuesday evening announced an 11-count indictment against the Southern Poverty Law Center, accusing the non-profit of defrauding donors by using their money to pay informants within hate groups they were monitoring.

Acting Attorney General Todd Blanche announced the indictment from a Montgomery, Ala., grand jury during a press conference, alleging that between 2014 and 2023, the SPLC paid more than $3 million to informants in hate groups the organization had vowed to dismantle.

“As the indictment described, the SPLC was not dismantling these groups, but it was instead manufacturing the extremism it purports to oppose by paying sources to stoke racial hatred,” he said, alongside FBI Director Kash Patel.

The indictment, which was returned by an Alabama grand jury just minutes before the press conference, details payments to informants in groups such as the neo-Nazi National Alliance and the Ku Klux Klan, but does not detail extensive evidence that the money was “used to fund the leaders and organizers of racist groups.”

Federal prosecutors allege that the SPLC obtained money via donations by making “‘materially false representations and omissions about” what the money would be used for and utilized bank accounts linked to “fictitious entities” to covertly pay their field sources.

One SPLC informant is described in the court document as a member of the online leadership chat group behind the 2017 Unite The Right protest in Charlottesville, Va., where one person was killed when a car rammed counterprotesters.

This informant was paid more than $270,000 between 2015 and 2023, according to the indictment, which alleges that they attended the Unite the Right event “at the direction of the SPLC,” made “racist postings under the supervision of the SPLC and helped coordinate transportation to the event for several attendees.

Another SPLC informant described by federal prosecutors as being affiliated with the neo-Nazi National Alliance organization stole 25 boxes of documents from the headquarters of a violent extremist group, copied the materials for the SPLC and returned the originals. The court document alleges that the SPLC paid the informant more than $1 million between 2014 and 2023.

Blanche told reporters during the press conference that the informants were paid via pre-paid cards with funds from donors that were moved from bank accounts that the SPLC created for five fictitious organizations in order to shield the source of the funds.

“They attempted to hide their criminal activity from our financial banking network,” Patel said.

“They set up shell companies and entities around America so that the financial system that we rely on as everyday Americans were deceived into believing that money is not coming from the Southern Poverty Law Center in the perpetration of this scheme and fraud but rather fictitious entities they stood up to perpetuate this ongoing fraud.”

The indictment charges the SPLC with six counts of wire fraud, four counts of bank fraud and one count of conspiracy to commit money laundering.

Ahead of the press conference, SPLC CEO Bryan Fair announced in a video statement that the organization and its employees were the target of a federal investigation focused on its use of informants, though they had yet to know all the details.

He defended the SPLC’s use of informants as necessary to protect themselves and the public after decades of being “engaged in unprecedented litigation to dismantle the Klan and other hate groups.”

Information the SPLC gained from the informants was frequently shared with local and federal law enforcement, including the FBI, he said, adding that they did not broadly share their use of informants to protect their identities.

“While we no longer work with paid informants, we continue to take their safety seriously. These individuals risked their lives to infiltrate and inform on the activities of our nation’s most radical and violent extremist groups,” he said, vowing to fight the allegations.

“We will not be intimidated into silence or contrition, and we will not abandon our mission or the communities we serve.”

The SPLC has long faced criticism from some Republicans and conservatives, who say the prominent anti-hate nonprofit has drifted from its mission of fighting extremism and White supremacy by labeling several right-wing organizations as hate groups.

In October, Patel announced that the FBI severed ties with the SPLC, accusing it of having “long abandoned civil rights work and turned into a partisan smear machine.”

Democrats, SPLC supporters and critics of the Trump administration lambasted the indictment as politically motivated, with the American Civil Liberties Union calling it “another example of the Trump administration’s extreme attempts to silence its critics.”

“Let’s be clear about what’s happening here. This administration is using the full weight of federal prosecution to target an organization whose mission is rooting out violent extremism,” Sen. Cory Booker, D-N.J., said online.

“This is part and parcel of Trump’s assault on free speech, on nonprofits and on anyone who dares to disagree with him.”

House Majority Leader Hakeem Jeffries, D-N.Y., called the indictment “baseless and illegitimate.”

“These partisan hacks who continue to weaponize the criminal justice system against perceived opponents will never intimidate us,” he said.

Norway is preparing to lift restrictions preventing its $2.2 trillion sovereign wealth fund from investing in government bonds issued by Syria.

The move follows the political transition after the ousting of Bashar al-Assad and the rise of Ahmed al-Sharaa, whose government has been seeking economic recovery and international reintegration after more than a decade of war and sanctions.

At the same time, Norway plans to newly restrict investments in bonds issued by Iran, aligning with ongoing international sanctions.

Policy Shift and Financial Context

The Norwegian sovereign wealth fund, the largest in the world, plays a major role in global financial markets. Its investment decisions often influence broader investor behaviour.

The updated policy removes Syria from the exclusion list for government bonds while adding Iran, reflecting changing geopolitical and sanctions dynamics.

Although the fund does not currently hold investments in Middle Eastern government bonds, the policy shift opens the door for future allocations and signals a reassessment of risk and legitimacy.

Geopolitical Significance

Norway’s decision represents a notable step toward Syria’s re-entry into the global financial system. It comes alongside other developments, including the restoration of Syria’s financial links with international institutions after years of isolation.

The move also highlights a divergence in how states are being treated: while Syria is gradually being reintegrated, Iran remains economically isolated due to continued tensions and sanctions.

As one of the world’s most influential sovereign investors, Norway’s stance could encourage other countries and institutions to reconsider their own restrictions on Syria.

Analysis

The decision reflects a broader recalibration of international economic engagement based on political change and shifting strategic priorities. By opening the possibility of investment in Syrian bonds, Norway is signalling cautious confidence in the new government’s direction and stability.

At the same time, the move remains largely symbolic in the short term. The wealth fund has no immediate exposure to Syrian debt, and actual investment will depend on risk assessments, market conditions, and institutional safeguards.

More importantly, the policy underscores how financial tools are increasingly used as instruments of foreign policy. Inclusion or exclusion from global capital markets can legitimise governments, incentivise reforms, or reinforce isolation.

In Syria’s case, gradual financial reintegration could support reconstruction and economic recovery, but it also raises questions about governance, transparency, and long-term stability after years of conflict.

With information from Reuters.