US EditionBrazil Police Arrest Former Head of Lender BRB, Sources Say
Investigators say Costa received R$146.5 million in bribes and bought R$12.2 billion in fraudulent credit portfolios from Banco Master.
- On Thursday, Federal Police arrested former BRB president Paulo Henrique Costa in Brasilia during the fourth phase of Operation Compliance Zero, investigating alleged corruption tied to Banco Master.
- Supreme Court Justice Andre Mendonca authorized the detention after citing evidence of an "illicit scheme designed to enable the fabrication, sale, and transfer of fictitious credit portfolios from Banco Master to BRB."
- Investigators traced 146.5 million reais in bribes from Banco Master owner Daniel Vorcaro to Costa, routed through six luxury properties in Sao Paulo and Brasilia.
- BRB's current president, Nelson Antonio de Souza, estimated the bank needs 8.8 billion reais in provisions, though Q4 2025 earnings have been indefinitely delayed.
- Parallel investigations numbering at least 15 continue across the Federal Police, Central Bank, and prosecutors regarding the broader money-laundering scheme, following the arrest of lawyer Daniel Monteiro.
13 Articles
13 Articles
Brazil Police Arrest State Bank President for $28M in Bribes From Collapsed Banco Master
Key Points — Brazil’s Federal Police arrested former Banco de Brasília (BRB) president Paulo Henrique Costa on Thursday morning at his Brasília residence, in the fourth phase of Operação Compliance Zero. STF Justice André Mendonça authorized the preventive detention after PF traced R$146.5 million in bribes from Banco Master owner Daniel Vorcaro, routed through the […] The post Brazil Police Arrest State Bank President for $28M in Bribes From Co…
Top Bank Official Arrested in Brazilian Corruption Probe
Brazil's federal police arrested Paulo Henrique Costa, former head of lender BRB, amid a corruption probe linked to Banco Master. Costa, who denies wrongdoing, is accused of being involved in a fictitious credit scheme and receiving significant bribes. The probe has impacted Brazil's financial sector.
Of the six properties located by the Federal Police, two are in Brasília and four are luxury apartments in São Paulo, valued at over R$ 30 million each.
Entrepreneur's prison happens as a decoupling operation that investigates a money-laundering scheme with the Bank Master, by Daniel Vorcaro
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