Brasília, Brazil – Brazil’s federal prosecutors are expected to take four to six months to review evidence in the ongoing investigation into the collapsed lender Banco Master, a source within the prosecutor general’s office told Reuters on Friday. The source spoke on condition of anonymity due to the sensitive nature of the case.
The probe follows a high-profile federal police operation targeting Banco Master, a financial institution that was recently placed into liquidation by Brazil’s central bank amid allegations of fraudulent practices and financial mismanagement.
Scope of the Banco Master Investigation
According to the source, prosecutors must analyze court-authorized access to bank and tax records covering 101 individuals and companies, as well as evidence seized from 42 different locations. The searches and seizures were approved by Brazil’s Supreme Court, reflecting the complexity and seriousness of the case.
“Given the volume of data and the multiple entities involved, it is unlikely that prosecutors will reach conclusions in the first half of 2026,” the source said.
Once the review is complete, federal prosecutors will determine whether to file criminal charges against those involved, including Banco Master’s controlling shareholder, Daniel Vorcaro. Vorcaro’s lawyers have stated that he has cooperated fully and continuously with authorities and denied any wrongdoing.
Arrests, Asset Freezes, and Alleged Crimes
The investigation comes after courts froze 5.7 billion reais ($1.06 billion) in assets belonging to individuals under investigation for alleged financial crimes, including:
- Racketeering
- Fraudulent management of a financial institution
- Market manipulation
- Money laundering
The first phase of the probe, conducted in November 2025, focused on allegations that Banco Master engaged in fraudulent credit practices. On the same day, Brazil’s central bank intervened, putting the bank into liquidation.
Although Banco Master represents less than 1% of Brazil’s total banking assets, the lender’s collapse has attracted national attention due to its rapid growth fueled by high-yield debt, which was marketed as being covered by Brazil’s private deposit guarantee fund.
Investors are now awaiting payouts from the guarantee fund for assets totaling approximately 41 billion reais ($7.63 billion).
Background on Banco Master
Banco Master was once a mid-sized private lender in Brazil, known for aggressively marketing high-yield debt instruments to investors. Authorities allege that the bank’s expansion relied on risky financial practices and potentially misleading claims regarding the safety of deposits.
The federal investigation into Banco Master is being closely watched by investors, regulators, and the wider banking sector, as the outcome may set a precedent for the oversight of smaller banks that rely heavily on the private deposit guarantee system.
Next Steps in the Investigation
- Review of seized bank and tax records
- Analysis of evidence from 42 locations
- Assessment of criminal liability for executives and shareholders
- Determination of potential fraud and racketeering charges
The source emphasized that the investigation will require months of careful analysis due to the volume of financial records and complex transactions involved.
Key Figures
| Item | Value |
|---|---|
| Assets Frozen | 5.7 billion reais ($1.06B) |
| Investor Claims | 41 billion reais ($7.63B) |
| Individuals/Companies Investigated | 101 |
| Locations Seized | 42 |
| Expected Duration of Investigation | 4–6 months |
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