In the latest development in the Banco Master scandal, a federal judge in Florida on January 8 recognized Brazil's Central Bank-ordered liquidation of the bank, blocking its US assets and dealing a blow to controller Daniel Vorcaro. The ruling counters Vorcaro's bid to halt recognition, citing a potential TCU reversal amid billion-dollar fraud allegations involving the Central Bank and Federal Police.
Judge Scott M. Grossman of the US Bankruptcy Court for the Southern District of Florida approved a request by liquidator EFB Regimes Especiais de Empresas to recognize the Brazilian liquidation process. This suspends US actions against assets of Vorcaro and partners, prioritizing the Brazilian proceedings. "The liquidation process is pending in Brazil, as are the main interests of those involved," Grossman wrote.
Vorcaro, arrested in November 2025 on suspicion of R$12 billion fraud (as covered in prior scandal updates), had argued for blocking based on TCU rapporteur Jhonatan de Jesus suspending an inspection on January 8 due to the case's public profile, deferring to the full TCU on January 21.
The US decision empowers the liquidator to pursue evidence and witnesses stateside on group entities like LetsBank and Master SA Corretora, amid Vorcaro's political ties and ongoing Brazilian probes. This follows recent TCU scrutiny of the Central Bank and massive FGC payouts exceeding R$41 billion to 1.6 million creditors—the largest in history—due to liquidity crises and fake asset schemes.
