A corruption investigation involving Brazilian state-controlled energy firm Petroleo Brasileiro SA is now being viewed as a liability to investors, who just a few months ago snapped up some of the company’s shares in the wake of the scandal. Petrobras confirmed this week it is being investigated by the U.S. Securities and Exchange Commission in relation to Brazilian prosecutors’ allegations that it was at the heart of a vast money-laundering and kickback scheme. The share price has dropped more than 40% since hitting an 18-month high in early September, and the company delayed its third-quarter earnings report because of auditors’ doubts. “No one knows how big the hole is (in the company’s numbers),” said Carlos Gribel, head of fixed income at Andbank Brokerage in Miami. “A lot of people think that worse things could start to come out.” According to prosecutors and suspects arrested in the case, a […]