Vorcaro family tied to alleged fraud in purchase of Porto Alegre hospital

Henrique Vorcaro and his son Daniel, through a network of companies, acquired the historic Hospital Beneficência Portuguesa in Porto Alegre for R$ 41 million in September 2022, far below the court‑assessed value of R$ 70.9 million. The hospital, owned by the insolvent Associação Portuguesa de Beneficência, was sold via a direct‑initiative private auction that closed at 23:59 with no public disclosure and no opportunity for competing bids. Brazil’s Ministério Público do Trabalho flagged several labor‑agreement settlements as possible simulated lawsuits intended to create fictitious credits and enrich the Vorcaros, urging courts not to approve them. Despite the objections, the agreements were ratified, increasing the debt burden on the hospital and prompting its sale. The winning bidder, AFC Holding, raised its capital to match the purchase price, while administrators André Beraldo de Morais and Thiago Assumpção Henriques—subjects of Operation Compliance Zero—have been linked to the transaction. A U.S. liquidation proceeding also alleges that Henrique Vorcaro is the true owner behind companies used in the deal. The case raises questions about the auction’s conduct and potential illicit enrichment.