Banco Master scandal
2020s fraud scandal in Brazil
From Wikipedia, the free encyclopedia
The Banco Master scandal is an ongoing political scandal in Brazil, involving investigations into alleged financial fraud in private bank Banco Master and the political dealings of its major shareholder, businessman Daniel Vorcaro. The scandal emerged in late 2025 with the launch of Operation Compliance Zero by the Federal Police and the liquidation of the financial institution by the Central Bank, as well as Vorcaro's arrest in November. It has been described as the country's biggest ever banking fraud scandal,[1] with evidence of involvement of political authorities, Central Bank employees and members of the judiciary.
The scandal involves the offering of investment securities with promises of large returns, even though the bank did not have the assets and financial resources it required to maintain as collateral. The operation functioned, in practice, as a kind of pyramid scheme, in which applications from new costumers covered the deficit of previous costumers. The bank also overvalued the property and assets it offered as collateral. Responsible for the oversight of financial institutions, the Central Bank had failed in preventing fraud. Financial institutions linked to state governments – such as the Banco de Brasília (BRB) – invested large sums in Banco Master in transactions deemed suspicious. Brazillian press also revealed that Vorcavo and Banco Master sought to cultivate relationships with officials at multiple levels of government – federal, state, and municipal, as well as within the judiciary – to offer them bargains, such as trips in private jets, parties, financial support in electoral campaigns, and service contracts, along others.
The Federal Police's investigations point to a criminal organization with four main cores of operation: a financial core, which was responsible for structuring frauds against the financial system; a institutional corruption core, aimed at co-opting Central Bank employees; a core for asset concealment and money laundering, using shell companies; and a core for intimidation and obstruction of justice, responsible for the illegal surveillance of opponents, journalists and officials.
News pieces since the end of 2025 indicate that multiple public figuresnhad, supposedly, direct access and financial relations with Daniel Vorcaro through the broadly inclusive rammifications of the scandal between politicians, menbers of the Supreme Federal Court (STF) and state governments. The press indicates that those who had received money from Banco Master, amongst others, Guido Mantega (a million reais per month), Ricardo Lewandowski (6 million reais to his family's office) and Viviane Barci de Moraes, wife of misnister Alexandre de Moraes (a 129 million reais contract paid in portions of 3,6 million per month – interrupted with the bank's liquidation). Later, in April 2026, it was disclosed more politicians which received money from Banco Master, including the ex-president of the Republic Michel Temer, ex-mayor of Salvador ACM Neto, and the then president of the União Brasil party Antônio de Rueda.
The scandal implicates Vorcaro, who was a major shareholder in Banco Master, which operated in Faria Lima, São Paulo. Vorcaro was arrested in November 2025 as he attempted to flee Brazil.[2][1] Investigators uncovered ties between Vorcaro and members of the Supreme Federal Court.[3]
Brazilian state-run bank Banco de Brasília is expected to set aside over 5 billion reais ($970 million) to cover transactions with the failed lender.[4] According to estimates by Brazil's Federal Police, the bank's missing funds may reach 12 billion reais ($2.2 billion), and a minimum of 1.6 million people may have been affected.[2] Finance Minister Fernando Haddad stated this could be “the biggest bank fraud” in Brazilian history.[2]
Timeline
2025
- 28 March: BRB (Banco de Brasília) announces that it will acquire Banco Master.
- 17 June: Brazil’s antitrust authority (CADE) approves BRB’s acquisition of Banco Master.
- 19 August: The Federal District Legislative Chamber approves BRB’s acquisition of Banco Master.
- 3 September: The Central Bank rejects BRB’s acquisition of Banco Master.
- 17 November: Fictor Group announces the acquisition of Banco Master with an investment of R$ 3 billion (approximately USD 600 million). Later in the night, Daniel Vorcaro is arrested at the airport while attempting to leave the country on a private jet bound for Malta.
- 18 November: The Federal Police launch Operation Compliance Zero. Later in the day, the Central Bank ordered the extrajudicial liquidation of Banco Master.
- 28 November: Vorcaro’s defense requests that the case fall under the jurisdiction of the Supreme Federal Court.
- 29 November: One day after being selected as rapporteur of the case at the Supreme Court, Justice Dias Toffoli traveled on a private jet to Peru with Augusto Botelho, the lawyer representing Banco Master’s compliance director. Later in the day, The Federal Regional Court of the 1st Region ordered the release of Daniel Vorcaro from prison.
- 2 December: Justice Dias Toffoli orders the case involving Banco Master to be placed under seal.
- 3 December: Justice Dias Toffoli orders that all investigations related to the Banco Master case be handled exclusively by the Supreme Court.
- 11 December: The press reported that the law firm of Viviane Barci de Moraes, the wife of Supreme Court Justice Alexandre de Moraes, had a contract with Banco Master providing for payments totaling R$131 million (approximately USD 26 million) over a 36-month period.
- 18 December: The rapporteur of the case at the Brazilian Federal Court of Accounts (TCU), Justice Jhonatan de Jesus, set a deadline for the Central Bank to provide a written justification for the extrajudicial liquidation of Banco Master, raising the possibility that the monetary authority may have acted ‘precipitously’ and disregarded less drastic alternatives.”
- 22 December: The press reported that Justice Alexandre de Moraes held discussions about Banco Master with Central Bank President Gabriel Galípolo. Later in the day, Moraes and Galípolo issued separate official statements confirming that the meetings took place, but denying that they discussed the Banco Master case. Both stated that the conversations were about the effects of the application of the Magnitsky Act on Moraes.
- 24 December: Justice Dias Toffoli schedules a confrontation hearing for December 30 between Daniel Vorcaro, Central Bank Supervision Director Ailton Aquino, and a representative of BRB. On the same day, the press reported that Justice Alexandre de Moraes had allegedly called Galípolo around six times to discuss the Banco Master case.
- 26 December: The Central Bank questions the Supreme Federal Court about the confrontation hearing involving Ailton Aquino.
- 27 December: Brazilian Banking Federation (Febraban) and other financial associations issue a statement in defense of the Central Bank and its autonomy.
- 28 December: The press reported that Justice Alexandre de Moraes dined at Daniel Vorcaro’s mansion in Brasília with other authorities in late 2024.
- 29 December: The Central Bank submitted its formal response to the TCU, explaining the technical and legal reasons that led it to order the liquidation of Banco Master. The documentation was requested by the court as part of the proceedings examining the regulator’s actions.
- 30 December: After Toffoli backed down on the confrontation hearing, the Federal Police separately heard the testimonies of Daniel Vorcaro and former BRB president Henrique Costa. Ailton Aquino was excused from giving testimony.
2026
- 2 January: The TCU authorized an on-site technical inspection of the documents held by the Central Bank regarding the liquidation of Banco Master. TCU auditors were granted direct access to internal notes, legal opinions, and records related to the case in order to reconstruct the decision-making process.
- 5 January: Justice Jhonatan de Jesus strengthened the inspection procedure, deeming the previously submitted documentation insufficient and requiring additional elements to assess whether the Central Bank observed principles such as reasoning, proportionality, and coherence in deciding on the liquidation. The court also considered the possibility of adopting a precautionary measure to protect assets related to the case.
- 15 January: The Central Bank of Brazil ordered the liquidation of the Reag fund in light of the multibillion-dollar scheme involving Banco Master. The fund had previously been targeted in a major operation by the São Paulo Public Prosecutor’s Office against a multibillion-dollar fraud scheme in the fuel sector involving members of the Primeiro Comando da Capital (PCC).[5][6][7]
- 21 January: The Central Bank of Brazil ordered the liquidation of Will Bank, a financial institution that is part of the Banco Master group.[8][9]
- 23 January: The Federal Police launched Operation Paper Boat as part of the investigations into the Banco Master case. The operation targets suspected irregular financial transactions at Rioprevidência, the fund that manages the assets of retirees and pensioners in the state of Rio de Janeiro.[10]
- 2 February: The financial arm of the Fictor Group, which attempted to acquire Banco Master, has filed for judicial recovery (bankruptcy protection).[11]
- 11 February: Justice Jhonatan de Jesus, the rapporteur for the Master case at the TCU, restricted the Central Bank’s access to the case proceedings.[12] Later that day, a Federal Police forensic analysis found a reference to Justice Dias Toffoli on Daniel Vorcaro’s cellphone. The findings were forwarded to the Chief Justice of the Supreme Court Edson Fachin, while a request was filed seeking Toffoli’s disqualification as the case’s rapporteur.[13] In response, Toffoli’s office stated that the request submitted by the Federal Police seeking to declare his recusal is based on “speculation” and lacks legal grounds.[14]
- 12 February: A closed-door joint meeting with all members of the Supreme Court was held to discuss the case. Shortly afterward, the Court issued a unanimous statement saying that it was “not a proper case for an allegation of recusal,” and that it recognizes “the full validity of the acts carried out by Justice Dias Toffoli,” while expressing “personal support for Justice Dias Toffoli, respecting the dignity of His Excellency, as well as the absence of any grounds for recusal or disqualification.” Soon after the meeting ended, Toffoli decided to step down as rapporteur of the Banco Master case.[15] Justice André Mendonça was randomly selected as the new rapporteur.[16]
- 13 February: Justice André Mendonça held a meeting with Federal Police officers involved in the investigations into Banco Master. Mendonça asked the officers for a general overview of the investigation, an assessment of what has already been done, and the next steps.[17]
- 25 February: The Parliamentary Inquiry Committee on organized crime in the Federal Senate approved the summoning of two brothers of Justice Dias Toffoli, former Central Bank president Roberto Campos Neto, and former Finance Minister Paulo Guedes. It also authorized the breach of the tax, telephone, and telematic secrecy of Banco Master and Maridt (a family company owned by the Toffoli brothers). The Committee further ordered hearings with Daniel Vorcaro and other executives linked to the financial institution. Finally, it approved invitations to hear Justices Dias Toffoli and Alexandre de Moraes, Central Bank president Gabriel Galípolo, as well as attorney Viviane Barci, Moraes’s wife.[18][19]
- 4 March: The Federal Police carried out the third phase of Operation Compliance Zero and arrested Daniel Vorcaro again. Vorcaro’s brother-in-law, Fabiano Zettel, and security guard Luiz Phillipi Mourão were also arrested. Mourão died by suicide shortly after his arrest.The operation was authorized by Justice André Mendonça.[20] Vorcaro was subsequently transferred to the Potim Penitentiary Complex, in the interior of the state of São Paulo.[21]
- 11 March: Shortly after being randomly assigned as rapporteur of a case that would require Congress to establish a Parliamentary Inquiry Commission to investigate Banco Master, Justice Dias Toffoli recused himself from the case, and it was reassigned to Justice Cristiano Zanin.[22] Later, Toffoli also declared himself recused from participating in the Second Panel’s decision regarding the arrest of Daniel Vorcaro. In both cases, Toffoli cited reasons of “personal grounds.”[23]
- 19 March: Justice Gilmar Mendes annulled the breach of confidentiality of the Arleen investment fund approved by the Parliamentary Inquiry Commission on Organized Crime. The fund is linked to the asset manager Reag, which in turn is under investigation in the Banco Master case. The fund appears in the investigations because it acquired, in 2021, a stake in the Tayayá Resort, in the state of Paraná, which had belonged to a company owned by the family of Justice Dias Toffoli.[24] Later in the day, Justice André Mendonça ordered the transfer of Daniel Vorcaro from a prison in São Paulo to the Federal Police Regional Headquarter in Brasília.[25]
- 26 March: The Public Prosecutor’s Office attached to the Federal Court of Accounts requested that the Court’s Internal Affairs Office investigate the conduct of Justice Jhonatan de Jesus in the Banco Master case and suggested his recusal depending on the evidence gathered.[26]
- 8 April: Several media outlets have reported that data from Brazil’s Federal Revenue Service indicate that the law firm of Viviani Barci de Moraes, wife of Justice Alexandre de Moraes, received R$80 million (approximately US$16 million) from Banco Master between 2024 and 2025.[27][28][29] Later, the Governor of the Federal District, Celina Leão, ordered BRB to remove from their positions 12 executives still linked to the bank’s former president, Paulo Henrique Costa, who is under investigation over the failed attempt to acquire Banco Master.[30]
- 14 April: The rapporteur of the Parliamentary Inquiry Commission on Organized Crime, Senator Alessandro Vieira, presented his final report calling for the indictment of Justices Alexandre de Moraes, Dias Toffoli, and Gilmar Mendes, as well as Prosecutor General Paulo Gonet.[31][32] However, the report was rejected by the commission by 6 votes to 4.[33]
- 16 April: The former president of BRB, Paulo Henrique Costa, was arrested by the Federal Police in a new phase of Operation Compliance Zero. He is suspected of failing to follow governance practices and of allowing unsecured dealings with Banco Master. According to the investigation, Costa allegedly received at least six properties valued at R$146 million from Daniel Vorcaro in exchange for facilitating the scheme involving the bank.[34]
- 6 May: The defense team of Daniel Vorcaro submitted a plea bargain proposal to the Federal Police and the Office of the Prosecutor General as part of the investigations into the Master case. The material was delivered on a USB flash drive, and its contents have already begun to be analyzed by the authorities. Following its receipt, investigators must assess the material to determine whether it contains new evidence and relevant information for the ongoing inquiries. This review period may take more than two months.[35]
- 7 May: Senator Ciro Nogueira, former Chief of Staff Minister under Jair Bolsonaro, was targeted in a search and seizure operation during a new phase of Operation Compliance Zero. According to the Federal Police, Nogueira received monthly payments of R$300,000 from Daniel Vorcaro and allegedly introduced a constitutional amendment aimed at expanding the coverage of the FGC (Credit Guarantee Fund) from R$250,000 to R$1 million. A brother of Nogueira and a cousin of Vorcaro were also targeted in the operation, which was authorized by Justice André Mendonça.[36][37]
- 13 May: The Intercept Brasil published messages and audio recordings in which Senator and presidential candidate Flávio Bolsonaro negotiated US$24 million (R$134 million) directly with Daniel Vorcaro. The money was allegedly intended to finance the film Dark Horse, about Jair Bolsonaro’s 2018 presidential campaign. Documents show that at least US$10.6 million (R$61 million) was paid between February and May 2025 in six bank transfers to finance the project. Analysis of the messages shows that part of the payments were made by Daniel Vorcaro to the Havengate Development Fund LP, based in Texas, whose registered agent is the “Law Offices of Paulo Calixto PLLC”, operated by Paulo Calixto, lawyer for Eduardo Bolsonaro.[38][39][40][41]
- 14 May: The Federal Police arrested Henrique Vorcaro, father of Daniel Vorcaro, in a new phase of Operation Compliance Zero. In addition to him, six other people were arrested, including two federal police officers and a police commissioner. The operation was authorized by Justice André Mendonça.[42]