The investigation into billion-dollar fraud involving Banco Master collects, this Tuesday (30), testimonies from the owner of Master, banker Daniel Vorcaro, the former president of Banco de Brasília (BRB), Paulo Henrique Costa, and the director of Inspection at the Central Bank (BC), Ailton de Aquino.
Statements to the Federal Police (PF) will be taken at the Federal Supreme Court (STF) building, in Brasília (DF), from 2pm.
The hearings are part of an investigation at the STF, which is investigating negotiations regarding the sale of Banco Master to BRB, a public bank in the Federal District (DF).
BRB tried to buy Master shortly before the Central Bank (BC) declared the institution’s extrajudicial bankruptcy, and despite suspicions about the sustainability of the business.
Paulo Henrique Costa was removed from presidency of the institution by court decision.
In November, the former president of BRB and Daniel Vorcaro were targets of Operation Compliance Zero, which investigates the granting of false credits. Fraud can reach R$17 billion in forged securities.
The hearings of those investigated were determined by Minister Dias Toffoli and will be carried out individually. Initially, the STF minister wanted a confrontation between those involved. However, Toffoli defined, days later, that the confrontation should only occur if the PF deems it necessary. A confrontation is when those involved come face to face to confront contradictory versions.
Although the director of the Central Bank was not investigated, his testimony was considered by Minister Toffoli to be of “special relevance” to clarify the facts, since the BC is the institution that monitors the integrity of financial market operations..
Banker Vorcaro’s defense informed Agência Brasil that it will not comment on the testimony because the process is being conducted in secrecy..
The defense of the former head of the BRB, Paulo Henrique Costa, in turn, reported that he did not speak before the testimony.
The Central Bank also did not comment on the testimony of the institution’s supervisory director.
BRB wanted to buy Master
In March this year, BRB announced its intention to buy Master for R$2 billion – a value that, according to the bank, would be equivalent to 75% of Master’s consolidated assets.
The negotiation caught the attention of the entire market, the press and political circles, as at the time the actions of Daniel Vorcaro’s bank caused distrust among financial sector analysts.
At the beginning of September, the Central Bank (BC) rejected the purchase of Master by BRB. In November, it was decreed bankruptcy of the institution financial.
Zero Compliance
Operation Compliance Zero is the result of investigations that the PF began in 2024, to investigate and combat the issuance of false credit titles.
The institutions investigated are suspected of creating false credit operations, simulating loans and other amounts receivable. These same institutions negotiated these credit portfolios with other banks.
After the Central Bank approved the accounting, institutions replaced these fraudulent credits and debt securities with other assets, without adequate technical evaluation.
Banco Master is the main target of the investigation launched at the request of the Federal Public Ministry (MPF).
In the note, BRB stated that it “has always acted in accordance with compliance and transparency standards, regularly providing information to the Federal Public Ministry and the Central Bank on all related operations [às negociações de compra do] Master Bank”.
