Updated from 11.51 am ETD.
NEW YORK (TheStreet) -- Shares of Banco Bradesco (BBD) - Get Banco Bradesco SA Report are down by 4.61% to $6.32 on Tuesday afternoon, following reports that company CEO Luiz Carlos Trabuco has been indicted along with two other company executives by Brazil federal police as part of an investigation into tax case fraud, Bloomberg reports.
There are further allegations of corruption and money laundering.
The two-year long investigation is looking to expose fraudulent activities involving Brazil's board of tax appeals and has already caught other business leaders, Bloomberg noted.
Additionally, some U.S. traded Brazil-based stocks slumped today as the South American country's currency is set for its worst monthly dip since September.
The real traded in the red today following the resignation of a second minister in two weeks, which is raising doubts that acting president of Brazil Michel Temer will be able to restore confidence in the country's economy.
The Minister of Transparency and Control, Fabiano Silveira, resigned yesterday after recordings of a conversation were published in which he allegedly criticized the Carwash investigation, while also offering advice to one of the politicians being looking into in the probe.
"This is the second minister in Brazil to resign, and chatter is that more tapes will be released implicating other ministers," Win Thin, the head of emerging-market strategy at Brown Brothers Harriman told Bloomberg. "As it was, I was very skeptical that an unelected president would be able to push through painful structural reforms, but having more corruption stories makes it even more difficult for Temer."
Banco Bradesco is a Sao Paulo-based multiple service bank.