Police Launch Second Phase in Banco Master Probe, Freeze R$5.7 Billion

Overview

• Federal police executed 42 search warrants across São Paulo, Bahia, Minas Gerais, Rio Grande do Sul and Rio de Janeiro, alongside court-ordered seizures and blocks exceeding R$ 5.7 billion.
• Targets include Banco Master owner Daniel Vorcaro, his relatives, businessman Nelson Tanure and ex-Reag executive João Carlos Mansur, with Vorcaro’s brother-in-law Fabiano Zettel briefly detained at an airport before being released.
• Agents seized luxury cars, watches, R$ 97,000 in cash and a firearm, and Justice Dias Toffoli ordered seized assets to be secured under STF custody.
• The inquiry focuses on alleged issuance and sale of fake credit instruments and CDBs promising up to 40% above market rates, with investigators estimating losses around R$ 12 billion and scrutinizing fund flows linked to Reag, including the Brain Cash case.
• Parallel to the criminal probe, the FGC is preparing to compensate about 1.6 million Banco Master clients with roughly R$ 41 billion under its guarantee cap, while BRB audits potential losses and weighs a possible capital injection by the Federal District government.