Brazilian federal police executed search and seizure warrants on Thursday targeting Senator Jaques Wagner, a close ally of President Luiz Inácio Lula da Silva, as part of an expanding investigation into alleged fraud, corruption and money laundering linked to the collapsed Banco Master.
The operation involved 18 warrants across Brasília, Bahia and São Paulo and forms part of a broader probe into financial irregularities tied to the former lender and its jailed ex-owner, Daniel Vorcaro.
Authorities are examining whether political figures received benefits in exchange for advancing the bank’s interests, as the scandal increasingly reaches prominent figures across Brazil’s political spectrum ahead of October’s general election.
Court documents authorized by Brazil’s Supreme Court cited indications that Wagner may have received undue economic benefits, including the alleged purchase of a luxury apartment in Salvador and access to other advantages linked to Banco Master.
Investigators are also examining whether the senator used his position in Congress to promote measures favorable to the bank, including proposals related to payroll loans and deposit insurance rules.
Police said the operation is investigating potential crimes including passive corruption, active corruption and money laundering.
Authorities reportedly seized approximately $50,000 during the operation in Brasília.
Banco Master was ordered into liquidation after intervention by Brazil’s Central Bank, while Vorcaro was arrested in March and remains at the center of the investigation.
Federal police estimate the bank’s alleged fraud may total approximately 12 billion reais ($2.3 billion).
Wagner denied wrongdoing and rejected allegations that he received money connected to Banco Master.
He stated that his relationship with Vorcaro was minimal and said he had never received funds from individuals linked to the bank.
His office later said the seized cash was legally obtained and that the apartment cited by investigators was never part of his assets.
The widening scandal has also touched Senator Flávio Bolsonaro, a leading presidential contender and son of former President Jair Bolsonaro.
Reports previously raised questions about contacts between Bolsonaro and Vorcaro concerning financing for a film about the former president.
Bolsonaro has denied any connection to the bank’s alleged fraud.
With Lula seeking another term and Bolsonaro emerging as a leading challenger, the Banco Master investigation is expected to remain a significant issue during the election campaign, alongside public security and crime.