Brasília – Former president of Banco de Brasília (BRB), Paulo Henrique Costa, is reportedly considering a plea bargain with federal police as investigations continue into alleged irregularities involving the bank and the Banco Master. The move comes as authorities prioritize collaboration with Daniel Vorcaro, the owner of Banco Master, who has begun procedures for a similar plea agreement, according to reports from CNN Brasil.
Costa’s potential willingness to cooperate was signaled through intermediaries who contacted the Polícia Federal (PF), indicating his readiness to provide information about the case. This isn’t the first time Costa has sought to engage with authorities; he reportedly attempted to provide further testimony in February, but those discussions did not progress at the time. The developments mark a significant turn in the investigation, which centers around the purchase of credit portfolios from Banco Master, a transaction that has drawn scrutiny from regulators and law enforcement.
The timing of Costa’s renewed interest in a plea bargain coincides with Vorcaro’s transfer to the PF’s headquarters in Brasília and the initiation of his own collaboration proceedings. Investigators, however, have indicated a waning interest in negotiating a deal with Costa in recent weeks, prioritizing Vorcaro’s potential testimony as central to unraveling the complexities of the case. While a deal with Costa isn’t off the table, its consideration will likely be deferred until further progress is made with Vorcaro and other ongoing investigations.
The case stems from concerns over the acquisition of what authorities have described as “dubious” credit portfolios from Banco Master. In December 2025, Costa, who served as BRB’s president since 2019 until his removal by the courts, was scheduled to testify before the PF regarding the purchase of these portfolios, as reported by Correio Braziliense. At the time, his legal counsel, Cleber Lopes, maintained that the transactions followed market criteria and were part of a strategic plan approved in 2021, emphasizing that no financial losses were incurred by BRB.
The Banco Master Shutdown and Broader Implications
The unfolding situation with BRB and Banco Master is occurring against a backdrop of increased regulatory scrutiny of Brazil’s financial institutions. In a related development, Brazil’s central bank shut down Banco Master as police detained its top investor, according to a Reuters report. This action underscores the authorities’ commitment to addressing potential financial misconduct and protecting the stability of the banking system.
Costa’s Previous Defense and Current Strategy
Prior to the possibility of a plea bargain, Costa’s defense team argued that the purchase of Banco Master’s credit portfolios adhered to market standards and was approved as part of a broader strategic plan. Lopes, Costa’s lawyer, stated that the operation was “based on technical parameters of the financial system” and that BRB had not identified any patrimonial losses related to the transactions. However, the ongoing investigations and Vorcaro’s willingness to cooperate suggest that authorities may possess information that contradicts this narrative.
The shift towards considering a plea bargain indicates a potential change in strategy for Costa, possibly in response to the mounting pressure from the investigation and the prospect of more damaging revelations. A collaboration with authorities could offer him a reduced sentence in exchange for providing detailed information about the alleged scheme and the involvement of other individuals.
The Role of Daniel Vorcaro and the Path Forward
Currently, the PF is heavily focused on securing a comprehensive collaboration agreement with Daniel Vorcaro. His insights into the operations of Banco Master and his potential knowledge of any illicit activities are considered crucial to the investigation. The extent to which Vorcaro’s testimony implicates other individuals, including those at BRB, remains to be seen.
The possibility of a deal with Paulo Henrique Costa remains open, but its advancement hinges on the progress made with Vorcaro and the emergence of new evidence. Investigators will likely assess the value of Costa’s potential testimony in light of the information already obtained from Vorcaro and other sources. The eventual resumption of negotiations with Costa will depend on the overall trajectory of the investigation and the potential for uncovering further details about the alleged financial irregularities.
Nelson Antônio de Souza, the newly appointed president of BRB, is now tasked with restoring confidence in the institution and navigating the fallout from the scandal. His leadership will be critical in addressing the concerns of stakeholders and ensuring the long-term stability of the bank.
As of March 20, 2026, the Polícia Federal continues its investigation, with the next key development expected to be further progress in negotiations with Daniel Vorcaro. Updates on the case will likely be released as the investigation unfolds.
This is a developing story.
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