Federal Police Rejects Second Plea Bargain Proposal from Daniel Vorcaro, Owner of Collapsed Banco Master
By Hotspotnews
In a fresh development in Brazil’s largest banking fraud investigation, the Federal Police (Polícia Federal – PF) has formally rejected the second proposal for a delação premiada (plea bargain or collaboration agreement) submitted by Daniel Vorcaro, former controller of the now-defunct Banco Master.
The PF informed Vorcaro’s defense lawyers of the decision by email on Wednesday, June 10, 2026. The message adopted the same firm position taken with the first proposal. Vorcaro, who remains in preventive detention at the PF superintendency in Brasília, learned of the rejection during a visit from his attorneys on Thursday, June 11.
The defense is now directing its main efforts toward the Procuradoria-Geral da República (PGR – Attorney General’s Office), which continues to analyze the latest version of the proposal.
Background: The Banco Master Fraud Case
Banco Master, controlled by Daniel Vorcaro, grew rapidly in recent years by issuing high-yield certificates of deposit (CDBs) that promised returns significantly above market rates — in some cases up to 140% of the CDI benchmark. These products were marketed as protected by the Fundo Garantidor de Créditos (FGC), Brazil’s deposit insurance fund.
Investigators allege the bank operated with insufficient or fictitious backing. According to the Federal Police, Vorcaro and associates created fake credit portfolios and titles worth approximately R$12.2 billion, which were sold to Banco de Brasília (BRB), a public bank. The scheme allegedly functioned in a pyramid-like manner, with new deposits used to cover shortfalls from earlier investors.
The Central Bank liquidated Banco Master on November 18, 2025, after the fraud came to light. The collapse caused massive losses estimated in the tens of billions of reais, affecting thousands of investors and straining the deposit guarantee fund. The case has been described by officials, including Finance Minister Fernando Haddad, as potentially the largest bank fraud in Brazilian history.
Vorcaro was first arrested in November 2025 at Guarulhos International Airport. He was later released under restrictive measures, including an electronic ankle monitor. In March 2026, during a new phase of Operation Compliance Zero, he was rearrested and placed in preventive detention. The investigation encompasses allegations of fraud against the national financial system, money laundering, criminal organization, corruption, and related offenses. Authorities have also pointed to the existence of a private structure used to intimidate adversaries and access confidential information.
What Is a Delação Premiada?
Under Brazilian Law 12.850/2013, a delação premiada allows individuals under investigation to provide useful information about crimes in exchange for benefits such as reduced sentences, conversion of prison time to house arrest, or other legal advantages. For an agreement to be valid, the collaborator must generally confess to the crimes, deliver new and verifiable information that advances the investigation, and demonstrate willingness to repair damages (often through restitution of assets).
The final decision on homologating any agreement rests with the Supreme Federal Court (STF) minister overseeing the case — in this instance, Minister André Mendonça.
The Sequence of Proposals
Vorcaro’s defense first submitted a formal proposal for collaboration in early May 2026. Both the PF and the PGR rejected it, concluding that the material added little new information beyond what investigators had already uncovered. Critics within the agencies noted that the proposal appeared selective and gave the impression that Vorcaro was seeking to shield associates or public figures.
A revised and supplementary version was presented in early June 2026. This second proposal reportedly included details about disbursements related to Senator Ciro Nogueira (PP-PI) and funding for the film Dark Horse, a biopic about former President Jair Bolsonaro.
Despite these additions, the PF again found the material insufficient. Investigators stated that the information largely repeated facts already known from the probe and did not introduce unprecedented elements capable of significantly advancing the case. They also highlighted the absence of a full and unequivocal confession of crimes, a key legal requirement.
Sources close to the investigation indicated that the PF viewed the latest submission as still falling short of providing concrete, novel contributions. The agency communicated its lack of interest in proceeding with negotiations under the current terms.
Current Status
The PGR, which holds primary responsibility for criminal prosecution, is independently reviewing the annexes and the latest proposal. Unlike the PF, the PGR can continue negotiations even after the police rejection. Reports indicate that prosecutors are assessing the novelty of the information, Vorcaro’s capacity to return resources (he reportedly increased his restitution offer from around R$40 billion to R$60 billion in earlier discussions), and the corroborative value of the evidence presented.
Any eventual agreement would still require final approval and homologation by STF Minister André Mendonça.
Vorcaro remains in custody in Brasília. His legal team continues to meet with him, although daily visitation time has been limited in recent periods. The defense maintains that further negotiations or additional information could still lead to a positive outcome with the PGR.
Broader Context and Implications
The Banco Master case has drawn widespread attention due to its scale and the alleged connections between the bank and political and institutional figures across different spheres. Investigations have examined benefits such as private jet travel, contracts, campaign support, and other advantages allegedly extended to influence decisions or obtain protection.
The repeated rejection of Vorcaro’s proposals underscores the high bar set by Brazilian authorities for collaboration agreements in major financial crime cases. Investigators emphasize that useful delações must deliver new, verifiable facts rather than rehash known information or attempt to limit exposure for third parties.
As the PGR continues its analysis, the case remains active. Vorcaro faces serious charges that, if proven, could result in lengthy prison sentences. The outcome of the current negotiations will likely influence the pace and direction of further revelations in what is already one of Brazil’s most significant recent financial scandals.
The situation continues to evolve, with all eyes on the PGR’s next steps and any potential developments before the STF.