Politics · Brazil · 5 hrs ago
Police question former Master and BRB executives over alleged fraud
Brazil’s Federal Police are investigating deals between Banco Master and BRB, the state-owned Bank of Brasília.
Investigators say Master sold BRB credit portfolios worth about 12.2 billion reais that were allegedly unsupported or overvalued.
Former Master owner Daniel Vorcaro denies causing losses and says the asset trades benefited BRB; his lawyers argue the investigation began too hastily.
Former BRB president Paulo Henrique Costa also denied wrongdoing, while former Master partner Augusto Lima was questioned about the transactions and credit letters linked to Tirreno Consultoria.
The investigation is examining suspected fraud and an alleged payment of 150 million reais in property to help advance the deal.
Police are moving toward the inquiry’s final stage, when they are expected to decide whether to charge anyone; Vorcaro’s lawyers have asked for the case to be dismissed and for his release from preventive detention.
Brazil’s Federal Police questioned former Banco Master owner Daniel Vorcaro and former BRB president Paulo Henrique Costa on Thursday, October 15, in an investigation into alleged fraud involving the banks.
Former Master partner Augusto Lima was questioned the following day as police pursued the final stage of the inquiry.
Investigators allege that Master sold BRB R$12.2 billion in credit portfolios that lacked backing and were overvalued.
Vorcaro and Costa denied wrongdoing and said the dealings did not harm BRB.
Vorcaro’s defense called the investigation’s launch hasty and asked for the inquiry to be closed and his preventive detention revoked.
- Who
- Federal Police questioned Daniel Vorcaro, Paulo Henrique Costa and Augusto Lima.
- What
- They were questioned in an inquiry into alleged fraud involving Banco Master and BRB.
- When
- Vorcaro and Costa were questioned on Thursday, October 15, 2026; Lima was questioned on Friday, October 16.
- Where
- Vorcaro was questioned at the 19th Military Police Battalion in Brasília. The sources do not state where the other questioning took place.
- Why
- Police are investigating alleged fraud in transactions between the banks, including credit portfolios said to lack backing and be overvalued.
Federal Police investigators
Daniel Vorcaro and his defense
Alleged credit portfolios
Federal Police investigators
Police say Master sold BRB R$12.2 billion in credit portfolios that lacked backing and were overvalued.
Daniel Vorcaro and his defense
Vorcaro denied causing losses to BRB and said the asset exchange produced positive results.
Operation Compliance Zero
Federal Police investigators
The operation uncovered alleged financial fraud and forms part of the investigation.
Daniel Vorcaro and his defense
Vorcaro’s defense called the operation’s launch hasty and said it damaged confidence in the bank.
Investigation
Federal Police investigators
Police are investigating alleged fraud and a possible financial counterpayment in the BRB-Master deal.
Daniel Vorcaro and his defense
Vorcaro’s defense said there was no proof of wrongdoing and asked for the inquiry to be closed.
The case began and led to the first phase of Operation Compliance Zero.
The first phase of the operation resulted in the arrests of Augusto Lima and Daniel Vorcaro.
Police questioned Vorcaro and former BRB president Paulo Henrique Costa.
Police questioned Augusto Lima, completing the series of three depositions.
- Questioned
- Daniel Vorcaro, Paulo Henrique Costa and Augusto Lima
- Alleged credit portfolios
- R$12.2 billion
- Alleged property payment
- R$150 million in luxury properties, according to police
- Vorcaro’s deposition
- About four hours, from 3 p.m. to 7 p.m. on October 15
- Lima’s deposition
- Began at 10 a.m. on October 16 and was paused at 12:30 p.m. for lunch
4 sources
What people are saying
Nearly one year after the investigations began, the investigations categorically demonstrate that the initial version released does not hold up on a factual or legal basis.
The difficult situation faced by the financial institution stems from the hasty launch of Operation Compliance Zero, which involved the institution in a false narrative of alleged billion-real fraud, undermining the confidence essential to a bank’s proper functioning.
Without any proof of illegal acts or fraud, the inquiry into the transactions between Banco Master and BRB should be closed.