The Banco Master and Reag scheme that multiplied assets 30,000 times and stole the people’s trust

Federal Police vehicle

#Banco Master

What seemed to be a resounding success in the Brazilian financial market was nothing more than a gigantic farce designed to deceive investors, regulators, and the average citizen who places their trust in banks and funds

Banco Master, together with the asset management firm Reag, orchestrated a criminal financial engineering scheme that artificially inflated the bank’s assets, generated absurd returns on paper, and in reality, served to mask risks, divert resources, and possibly launder money-all while raising billions with promises of high returns.

It all began with generous loans from Banco Master to shell companies.

In April 2024, the bank granted R$ 459 million to Brain Realty Consultoria, a company with negligible share capital and managed by a former Reag employee.

Two days later, almost all of that money – R$ 450 million – was transferred to the Brain Cash Fund, managed by Reag and created just 20 days earlier, with a paltry net worth of R$ 15,000.

Within hours, the fund multiplied its assets by about 30,000 times, a number that would make any honest investor laugh in disbelief – or anger.

The fraud continued at an astonishing pace: the money circulated in lightning-fast transactions through other Reag funds, such as D Mais and High Tower, in a matter of minutes.

The peak of the fraud occurred when the High Tower fund used part of these resources to buy old, worthless bonds from the defunct Banco do Estado de Santa Catarina (Besc), which cost about R$ 850 million but were recorded on the balance sheet as being worth more than R$ 10 billion! This grotesque overvaluation artificially inflated assets, generated stratospheric returns-one of which reached over 10 million percent in 2024-and created the illusion that the funds were extremely profitable and that Banco Master was solid and liquid.

Subsequently, these overvalued securities were resold among Reag’s own funds, fragmenting the money into additional layers (such as Anna, Astralo 95, and Growth 95), making tracking difficult.

Hours later, almost everything returned to Banco Master in the form of purchases of the bank’s own CDBs (Bank Deposit Certificates), which paid above-average interest rates to attract more victims.

In practice, the bank financed itself without a true external borrower, while the controllers and their families lined their pockets and concealed the true beneficiaries.

The Federal Police, the Public Prosecutor’s Office, and the Central Bank finally dismantled this criminal scheme.

Banco Master was liquidated extrajudicially at the end of 2025, and CBSF (formerly Reag Trust) suffered the same fate in January 2026. Figures such as Daniel Vorcaro (owner of Master), his family members, and João Carlos Mansur (founder of Reag) are under investigation, with searches, asset freezes, and suspicions of using front men.

There are also indications of links to the PCC (Primeiro Comando da Capital), which makes the case even more serious.

This scandal exposes what conservatives have been warning about for years: a loose financial system, full of loopholes, allows white-collar fraudsters to manipulate the hard-earned money of millions of Brazilians.

While the establishment feigns surprise and protects the powerful, the people-who trusted in CDBs (Bank Deposit Certificates) and funds-are left with the losses.

It is time to demand exemplary punishment, prison sentences for the guilty without the right to parole, rigorous regulation, and an end to impunity.

Enough of billion-dollar frauds that enrich a few and destroy the economies of many.

Brazil needs morality, responsibility, and real protection for honest workers!

Published in 01/17/2026 12h30

Portuguese version

Text adapted by AI (Grok) and translated via Google API in the English version. Images from public image libraries or credits in the caption.

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