Court Upholds Arrest of Banco Master Owner as Fraud Probe Widens

Overview

• A federal appeals judge kept Daniel Vorcaro in jail, citing strong indications of systemic fraud, obstruction of oversight and ongoing risk to public and economic order.
• Judicial findings describe a structured criminal scheme, note 'conscious participation' by BRB executives and estimate potential losses above R$10 billion, with BRB leaders removed from their posts for 60 days.
• Investigators say at least R$12.2 billion flowed from BRB to Master from January to May 2025 through portfolios later tied to the newly created firm Tirreno, with total BRB–Master transfers reaching R$16.7 billion since mid‑2024.
• The Central Bank placed Banco Master into extrajudicial liquidation and the Federal Police launched Operation Compliance Zero, arresting Vorcaro and other executives and seizing assets including luxury goods.
• Authorities are preparing what could be the FGC’s largest payout, with potential disbursements up to R$48 billion to roughly 1.6 million creditors, as the PF also probes about R$1.876 billion in non‑FGC‑covered investments by 18 state and municipal pension funds.