The Brazilian Federal Police detained the former president of the Bank of Brasília (BRB), Paulo Henrique Costa, today on suspicion of corruption and money laundering related to the acquisition of Banco Master. The arrest is part of a new phase of Operation Compliance Zero, which investigates a scheme to embezzle funds from Master through multi-million dollar operations involving the purchase of fraudulent portfolios.
Investigators identified that the public bank executive allegedly received six luxury properties valued at 146 million reais (24.7 million euros) to bypass BRB’s internal rules, allowing deals with Master to proceed without guarantees. In a statement to local media, the former BRB president’s defense labeled the arrest “unnecessary” and stated they would examine the decision before taking action.
According to the Federal Police, BRB conducted inconsistent operations with Banco Master in an attempt to provide financial relief to Daniel Vorcaro’s institution while the Central Bank of Brazil (BC) was analyzing the bank’s sale proposal.
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Paulo Henrique Costa assumed the presidency of BRB in 2019 and spearheaded the attempted purchase of Banco Master, which was ultimately liquidated by the Central Bank in November 2025. The executive was removed from his post by court order and subsequently dismissed in November by the Governor of the Federal District, Ibaneis Rocha, following the first phase of the police operation.
Also targeted by an arrest warrant today was attorney Daniel Monteiro, identified by investigators as the “legal architect” and confidant of Master’s owner, Daniel Vorcaro. Monteiro represented Master in negotiations with BRB and was responsible for managing the funds and accounts Vorcaro allegedly used to divert resources from Banco Master to bribe politicians and authorities.
Daniel Vorcaro is currently in preventive detention and is negotiating a plea bargain to confess his involvement and identify accomplices. The potential agreement has generated significant anticipation, as investigations point to suspicious relationships between Vorcaro and various politicians, as well as members of the Supreme Federal Court (STF).
