Brazil beef giant JBS under police investigation

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SAO PAULO, June 16 | Tue Jun 16, 2009 12:24pm EDT

SAO PAULO, June 16 (Reuters) - JBS SA (JBSS3.SA), the world's biggest beef processor, is under investigation by Brazil's federal prosecutor's office in a widespread corruption case that has targeted several companies in the beef industry.

Other meatpackers and leather and hide companies, including Bihl, Margen and Curtume Nossa Senhora Aparecida, are also part of the investigation, which began about a year ago, the public relations department of the federal prosecutor's office told Reuters on Tuesday.

In an statement released earlier on Tuesday, the prosecutor said several people were being rounded up and held in police custody. The prosecutor's office said it was investigating the bribing of public officials, racketeering, corruption, fraud and collusion in a broad-reaching sting operation spanning several states.

No one at JBS was available to comment when contacted by Reuters.

(Reporting by Camila Moreira; writing by Reese Ewing)

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