Brazil Shuts Banco Master as Police Arrest Owner in R$12 Billion Fraud Probe

Overview

• Federal police detained Daniel Vorcaro as he prepared to board a private jet and executed five preventive arrests, two temporary arrests and 25 searches across SP, RJ, MG, BA and the Federal District under Operation Compliance Zero.
• The Central Bank decreed extrajudicial liquidation of Banco Master and declared the controllers’ and former administrators’ assets unavailable, effectively halting the proposed sale to a consortium led by Fictor.
• A judge in the Federal District ordered about R$12.2 billion frozen, and agents seized roughly R$1.6 million in cash along with luxury cars, artworks and high‑end watches.
• Investigators say Master fabricated credit portfolios and sold the titles to another bank, later swapping them for other assets without proper valuation, with suspected crimes including fraudulent management, reckless management and criminal organization.
• The court suspended BRB’s president Paulo Henrique Costa and its finance chief for 60 days, opposition lawmakers moved to open CPIs on the BRB–Master dealings, and the PF director told a Senate inquiry the fraud under investigation may reach R$12 billion.