Brazil police probe R$3 million pension fund misinvestment in Paulista

On 10 June 2026 the Federal Police launched Operation Take Over to investigate alleged irregularities in the management of the municipal pension fund for public‑servants in Paulista, Pernambuco.

Prosecutors say more than R$3 million were placed in high‑risk financial letters issued by Banco Master, a bank that was liquidated in November 2025, in direct violation of legal and governance standards. Ten search and seizure warrants were executed in Recife, Paulista and Rio de Janeiro.

The fund provides benefits to 5,335 registered retirees and beneficiaries. The founder of Banco Master, Daniel Vorcaro, was arrested in Brasília and remains in custody while a potential plea‑bargain is examined. Investigators also identified possible abandonment of the investment committee’s oversight responsibilities.