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[BUSINESS] · Brazil · 22 sources

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CVM investigation ordered by Flávio Dino into Banco Master case

Supreme Court Minister Flávio Dino has ordered the Federal Police to open an inquiry into the Securities and Exchange Commission of Brazil (CVM) regarding its oversight of funds linked to the defunct Banco Master. The investigation focuses on the potential omission of the regulator following a February 2022 complaint from the Credit Guarantee Fund (FGC). The complaint detailed accounting inconsistencies, price manipulation, and the use of FGC-covered resources to purchase illiquid assets, totaling over R$ 3 billion of the R$ 5 billion involved.

Investigators have also uncovered evidence regarding Daniel Vorcaro, the former banker, including messages suggesting he exercised total management over the company Tirreno, which was involved in transactions with BRB. Additionally, Central Bank President Gabriel Galípolo addressed a separate matter involving a contract between Banco Master and the brother of a Central Bank official, stating the situation is distinct from other investigations.

Market entities Amec and IBGC have called for transparency and clarifications to protect the CVM's independence and credibility. The CVM has been ordered to provide a full copy of the archived investigation within 72 hours.

Entities

AMEC · Abraham Palatnik · Augusto Lima · Banco Master · Comissão de Valores Mobiliários · Daniel Vorcaro · Flávio Dino · IBGC · Jaques Wagner · Otto Lobo · Polícia Federal

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about 5 hours ago