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PF Investigates R$ 12 Billion Fraud at Banco Master and Alerts About Risks to Investments, Liquidation, and FGC Protection.
A set of financial frauds involving Banco Master may have moved up to R$ 12 billion, according to the Director-General of the Federal Police, Andrei Rodrigues, on Tuesday (11/18/2025), during a session of the Organized Crime CPI in the Senate.
The investigation, which is taking place in Brasília, is examining how the institution may have used false securities, unsecured operations, and irregular transactions to mask liquidity issues, as well as understanding why the case may have direct impacts on the money market, investments, and the protection of the FGC.
The President of Banco Master, Daniel Vorcaro, and four directors were arrested in the operation, which includes the Federal Police, the Central Bank, and Coaf in a joint effort to dismantle a possible scheme that, according to authorities, shows characteristics of large-scale financial crime.
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Frauds May Have Reached R$ 12 Billion, Says Federal Police
The Federal Police claims that the deficit caused by the false credit securities is much higher than initial estimates. During the CPI, Rodrigues reinforced the scale of the scheme:
“We are conducting an important operation, with the Central Bank and Coaf working together, in a crime against the financial system. It is said that R$ 12 billion is involved in this crime under investigation, with several arrests. In this operation on Tuesday, the fraud is R$ 12 billion”, the director stated.
This billion-dollar figure places the case among the largest recent financial scandals in the country, especially because it involves raising money from investors and selling typical investment products, such as CDBs, without proof of real liquidity.
Sale of False Securities and Liquidity Maneuvers are at the Center of the Investigation
According to documents from the Federal Public Ministry, Banco Master allegedly issued R$ 50 billion in CDBs promising interest rates above the market average.
However, the bank did not prove to have sufficient resources to honor these securities in the future — something essential for any institution offering this type of investment guaranteed by the FGC up to a certain limit.
To try to demonstrate solidity, Banco Master allegedly simulated operations of purchasing credits from a company called Tirreno.
However, the assets did not exist. Even without paying for them, the bank resold these same credits to BRB, which spent R$ 12.2 billion without clear documentation — a transaction considered highly suspicious by investigators.
BRB May Have Acted to “Support” Banco Master’s Crisis
The investigations indicate that BRB, the public bank of the Federal District, attempted to artificially bolster Banco Master’s liquidity during a critical period.
Additionally, BRB had signaled interest in purchasing Banco Master, but the deal was ultimately blocked by the Central Bank.
According to the Federal Public Ministry, BRB injected R$ 16.7 billion into the institution between 2024 and 2025, with R$ 12.2 billion being part of transactions with indications of fraud.
Investigators also highlight that these transactions occurred during the same period that BRB sought to convince regulatory bodies about the safety of the purchase operation.
The document emphasizes indications that “BRB sought to support Banco Master during its liquidity crisis”, which deepens suspicions about the real intention behind the billion-dollar transactions.
How Suspicions Affect Investors and the Financial Market
Although the FGC guarantees part of deposits in case of financial institution bankruptcies, the billion-dollar volume of frauds and the scale of operations raise additional concerns.
Investors who invested in CDBs of the bank may be directly affected, especially after the arrest of the institution’s top management.
Moreover, the case brings into debate how internal operations between banks can be used to mask financial difficulties, necessitating increased attention from those investing money in smaller institutions seeking higher interest rates.
Defense Remains Silent as Pressure Mounts
So far, the defense of Daniel Vorcaro and the Banco Master’s own advisory have not commented on the accusations.
Meanwhile, the Federal Police continues to analyze documents, contracts, and internal systems to identify all those involved and understand the destination of the resources used in the operations.
The expectation is that new phases of the investigation will bring more details about the possible impact of the liquidation of the securities and the risks for clients and the national financial system.
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