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[BUSINESS] · Brazil · 11 sources

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Banco de Brasília faces R$ 17 billion fraud investigation

Federal Police investigations have identified approximately R$ 17 billion in financial fraud involving operations between Banco de Brasília (BRB) and Banco Master. The investigation suggests that six former BRB directors participated in decisions involving fraudulent securities and the mass production of false documents. The scheme allegedly utilized shell companies, such as Tirreno, to provide a veneer of legitimacy to transactions.

BRB has issued a formal statement asserting that the institution is a victim of criminal acts and should not be associated with its former executives. The bank noted that its executive board has been fully renewed and internal governance controls have been strengthened.

To address the situation, BRB has commissioned an independent forensic audit conducted by the law firm Machado e Meyer with technical support from Kroll. The findings of this audit have been shared with the Federal Police, the Federal Public Ministry, the Central Bank, and the Securities and Exchange Commission of Brazil (CVM).

Entities

Banco Master · Banco de Brasília · Daniel Vorcaro · Distrito Federal Government · Federal Police · Paulo Henrique Costa · Polícia Federal

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