Banco Santos bankruptcy judge faces scrutiny over recorded meeting

A recording has surfaced involving Paulo Furtado de Oliveira Filho, the judge overseeing the Banco Santos bankruptcy in São Paulo, suggesting a sale of the institution to Banco Master. The 45-minute audio, recorded in August 2024, allegedly shows the judge discussing a potential settlement with the heirs of the late banker Edemar Cid Ferreira.

During the meeting, which took place in the judge's chambers without the presence of the heirs' lawyers or the Public Ministry, the magistrate reportedly suggested the family sell their interests to Banco Master and even recommended specific lawyers. Legal experts have characterized the meeting as irregular due to the absence of legal counsel and the nature of the discussions regarding a buyout and settlement.

The bankruptcy process, which has lasted over 20 years, is currently suspended by the National Council of Justice (CNJ) as it investigates potential irregularities in the proceedings. Judge Furtado has denied any wrongdoing, stating that his decisions are subject to appellate review and that he treats all parties equally. He claimed to have no knowledge of the clandestine recording.