Unsealed Banco Master Evidence Escalates Political Probe Targeting Bolsonaro Allies

The Supreme Federal Court (STF) in Brasília has unsealed key evidence from the disgraced former owner of Banco Master, Daniel Vorcaro, dramatically escalating a judicial probe that now directly involves top political allies and family members of former President Jair Bolsonaro. The decision by STF Minister André Mendonça to lift the secrecy on data from Vorcaro’s cell phone intensifies the massive banking fraud investigation, known as "Operation Compliance Zero," while fueling a distinct corruption inquiry into the financing of a film about the ex-president.

The core of the matter centers on the mid-sized bank that the Central Bank of Brazil (BCB) ordered into extrajudicial liquidation in November 2025 after federal authorities launched Operation Compliance Zero. Investigations allege that the institution operated a colossal fraud, which has been described as the largest banking fraud in the country’s history, with an estimated R$41 billion loss to the government-backed Credit Guarantee Fund (FGC) alone. Vorcaro, the bank’s controller, was repeatedly arrested in the ensuing probes for alleged crimes including fraudulent management, money laundering, and corruption.

The political fallout stems from Vorcaro’s alleged financial support for "Dark Horse," a film biography of Jair Bolsonaro. The unsealed communications from the former banker's devices now provide investigators with an expanded view, which the Federal Police (PF) allege show attempts to pay off Central Bank officials and illegal access to sensitive prosecution systems.

The scandal has split into two parallel judicial tracks. In the first, Minister Mendonça authorized an investigation into whether Vorcaro’s alleged private transfers—totaling over 61 million reais ($12 million)—to finance the film, made at the request of Senator Flávio Bolsonaro, constituted crimes such as money laundering and currency evasion. Flávio Bolsonaro, a sitting senator and presidential candidate, has denied any irregularity, stating he was simply seeking private sponsorship for a private film.

In a separate track, Minister Flávio Dino authorized "Operation Make Up," which targets the alleged misuse of public funds for the same film. This PF operation investigates whether parliamentary amendments—taxpayer money designated by lawmakers for public projects—were improperly channeled through non-profit entities to the film’s production company, an allegation denied by allies, including Deputy Mario Frias, who is a central target of the inquiry.

The dual probes mean that a massive financial crime scandal has converged with the political interests of the former ruling family, ensuring that the judicial system remains a central factor in Brazil's political stability and the country’s political risk premium. The next concrete step will be the formal conclusion of the investigations authorized by Ministers Mendonça and Dino, which will determine if formal charges are brought against the Bolsonaro allies ahead of the upcoming election.