Nine Brazilian Executives Accused of Graft in Petrobras Case to Be Released

Nine Brazilian Executives Accused of Graft in Petrobras Case to Be Released

Supreme Court says executives will wear ankle monitors and will be under house arrest

By LUCIANA MAGALHAES/WSJ

April 28, 2015 10:11 p.m. ET

SÃO PAULO—Brazil’s Supreme Court said Tuesday it has allowed the release from jail of nine executives accused in the alleged graft scheme at government-run energy firmPetróleo Brasileiro SA, or Petrobras.

In a statement, Minister Teori Zavascki, who is overseeing the case for the high court, said that risks to the corruption investigation have been reduced and that alternative measures can now take place.

The freed executives will need to wear ankle monitors and will be under house arrest, the Supreme Court said in the statement posted on its site. They will also need to be removed from the management of the companies allegedly involved the corruption case.

In December, Brazilian prosecutors filed charges against several suspects in the corruption investigation alleging construction companies bribed public officials and overbilled Petrobras for contracts.

The group ordered free on Tuesday includes Ricardo Pessoa, owner of UTC Engenharia SA. Investigators allege UTC is part of a cartel of construction companies that fixed prices on contracts at Petrobras. Lawyer Alberto Toron, who represents Mr. Pessoa, had previously said his client denied the allegations.

Senior executives of other large construction companies, including OAS SA, which filed for bankruptcy amid Brazil’s largest corruption investigation, have also been ordered free Tuesday. Lawyers representing OAS executives have said their clients have denied wrongdoing.

Write to Luciana Magalhaes at Luciana.Magalhaes@dowjones.com