How organized crime penetrated the heart of the brazilian financial market

Faria Lima Avenue

#Reag

In yet another episode exposing the corruption that has taken root in parts of the national financial system, the Central Bank this week decreed the extrajudicial liquidation of CBSF Distribuidora de Títulos e Valores Mobiliários (formerly Reag Investimentos), an asset management company that, under the guise of fund management, served as a channel for scandalous operations involving billion-dollar frauds and money laundering by the Primeiro Comando da Capital (PCC) and the already liquidated Banco Master

Investigations by the Federal Police, especially in Operations Carbono Oculto and Compliance Zero, revealed a sordid scheme: approximately 40 investment funds, many concentrated on the busy Avenida Faria Lima, were allegedly used to manage no less than R$ 30 billion in resources supposedly linked to the country’s largest criminal faction.

This dirty money, originating from trafficking, fuel adulteration, and tax evasion in the billions, circulated disguised as legitimate investments, demonstrating how organized crime has managed to deeply penetrate the formal Brazilian economy.

In addition to its connection with the PCC (Primeiro Comando da Capital), Reag was also a key player in the Banco Master scandal, controlled by Daniel Vorcaro.

Between 2023 and 2024, fraudulent operations totaling R$ 11.5 billion were structured: the bank granted phantom loans to shell companies; these amounts were quickly transferred to funds managed by Reag, simulating unreal returns, and the money returned to Master through investments in CDBs (Bank Deposit Certificates).

A true criminal financial carousel, artificially inflating the institution’s assets and deceiving investors and regulators.

The former CEO and founder of Reag, João Carlos Mansur, became a direct target of police searches shortly before the Central Bank’s decision, reinforcing the seriousness of the irregularities.

The Central Bank, in ordering the liquidation due to “serious violations of the rules of the National Financial System,” took a necessary measure to clean up the market and protect law-abiding citizens who place their trust-and their money-in these institutions.

It is revolting to see that, while millions of Brazilians honestly struggle to build a better life, white-collar criminals and true drug traffickers use sophisticated financial market mechanisms to launder money and evade astronomical taxes.

This type of contamination is intolerable.

The fact that Reag represents a tiny fraction of the system (less than 0.001% of assets) does not diminish the gravity of the situation: every loophole exploited by crime is a threat to national security and the economy as a whole.

The Central Bank’s decision, under the current administration, demonstrates a willingness to combat these evils without hesitation.

Let this serve as a lesson and a warning: Brazil cannot accept that organized crime transforms Faria Lima into an extension of crime.

The time has come to tighten the rules, severely punish those responsible, and protect the financial system against this unacceptable infiltration.

A conservative and law-abiding society demands-and deserves-institutions and authorities of integrity that do not waver in the face of crime.

Published in 01/17/2026 17h21

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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