Banco Master Owner Arrested Again Amid Fraud Investigation

The owner of Brazil’s Banco Master, Daniel Vorcaro, has been arrested again as investigations into alleged fraud, intimidation, and corruption within the financial institution continue. The arrest, carried out by federal police in São Paulo on Wednesday, marks a significant escalation in the probe surrounding the bank’s collapse.

Recent Arrest and Allegations

Daniel Vorcaro was detained on the order of Brazil’s Supreme Court, which also issued arrest warrants for three other individuals. Authorities have frozen assets worth R$22 billion (approximately $4.2 billion) as part of the investigation. The court cited concerns about potential interference with the criminal investigation and evidence suggesting threats against employees and a journalist.

The investigation alleges the existence of an “intimidation” cell coordinated by Vorcaro, including a former police officer, which gathered personal data on critics and discussed physical threats. Messages cited in the arrest warrant reportedly show Vorcaro expressing a desire to harm a reporter.

Central Bank Involvement and Corruption Claims

The probe also implicates two central bank staffers, who have been suspended, accused of receiving payments in exchange for confidential supervisory information and advice on regulatory matters.

Previous Arrest and Banco Master’s Collapse

Vorcaro was previously arrested in November of last year while attempting to board a private jet, shortly after Brazil’s central bank ordered the liquidation of Banco Master. He was later released with conditions, including the employ of an electronic ankle tag.

Banco Master collapsed with estimated losses exceeding R$40 billion, marking Brazil’s largest banking failure in a generation. The bank had rapidly expanded by offering high-yield savings certificates.

Political Connections and Investigation Shift

The scandal has raised concerns about the influence of Vorcaro and Banco Master within Brazil’s political establishment. Critics allege a vast network of influence-peddling involving politicians, judges, and public officials.

Justice André Mendonça recently took control of the investigation after his colleague, José Antonio Dias Toffoli, recused himself following accusations of conflicts of interest. A police investigation revealed prior messaging between Toffoli and Vorcaro, and Toffoli’s past financial ties to a company linked to Vorcaro’s brother-in-law, Fabiano Campos Zettel.

Further Arrests

An arrest warrant was also issued for Fabiano Zettel, who has reportedly turned himself in to authorities. He is alleged to have been involved in payments to individuals who monitored Vorcaro’s rivals and in recruiting a central bank employee.

Vorcaro’s defense team has denied the allegations, stating he has cooperated with authorities and never attempted to obstruct the investigation.