SÃO PAULO—Brazilian businessman Eike Batista was jailed in Rio de Janeiro Monday after turning himself in to police over corruption allegations, marking a rapid fall from grace for the country’s once richest man.

Federal police arrested the former tycoon as he stepped off an American Airlines flight from New York, where Mr. Batista had been since authorities issued an arrest warrant on Thursday and turned to Interpol for help with the manhunt.

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