Second IPG Agency Is Ensnared in Brazil Corruption Scandal
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A second Interpublic Group of Cos. agency, FCB Brasil, has been implicated in Brazil’s ongoing corruption investigation, a week after a former executive at Lowe & Partners’ Brazilian agency, Borghi/Lowe, was detained by police regarding payoffs to a corrupt politician.
FCB Brasil admitted authorizing a payment via a third party to a shell company called LSI, owned by former congressman Andre Vargas, who is under arrest, reported Meio & Mensagem, Ad Age’s editorial partner in Brazil.
Until the news broke about the IPG agencies, the ad industry didn’t appear to be involved in Operation Car Wash, a massive investigation into a huge price-fixing scandal in which Brazilian construction companies and other suppliers are said to have vastly over-charged state-controlled oil giant Petrobras, bribed Petrobras executives and funneled money to politicians. (Petrobras this week wrote off $2.7 billion due to losses from alleged graft and corruption when the company announced its financial results).
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