Former CEO Jose Sergio Gabrielli. Image courtesy of Roda Viva/Youtube.

A Brazilian judge froze the assets of former Petrobras CEO Jose Sergio Gabrielli Wednesday in connection with an ongoing corruption probe into the state owned company.

Gabrielli served as chief executive of Petrobras from July 2005 to January 2012.

The total value of the frozen assets has not been disclosed.

Prosecutors allege that Gabrielli conspired with Brazil-based construction firm Andrade Guitierrez to overcharge Petrobras about $12.4 million for expansion work at the company’s technology center in Rio de Janeiro, Reuters said.

A judge granted prosecutors access to banking, tax and phone records belonging to Gabrielli as well as former Petrobras executives Renato Duque and Pedro Barusco.

Neither Gabrielli, Petrobras nor Andrade Guitierrez have commented on the judge’s decision.

Andrade Guitierrez denies any involvement in the alleged corruption scheme.

Earlier this month, former Petrobras international director Nestor Cervero was arrested by police for allegedly participating in bribery and kickback schemes during his tenure at the company.

Cervero was fired last March and is the third Petrobras executive to be arrested for alleged corruption along with Renato Duque and Paulo Roberto Costa.

Earlier this year, Costa was arrested on corruption charges and later admitted to taking a $636,000 bribe tied to the company’s 2006 purchase of a Texas refinery.

Costa alleges executives were skimming as much as 3 percent off the price of contracts and giving the money to political organizations, including campaigns run by transportation chief and politician Sergio Machado.

Machado has denied any wrongdoing.


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