Under the agreement, Vorcaro will detail the inner workings of what authorities describe as a fraudulent empire and provide specific dates, documentation, and descriptions of the procedures used to coordinate with public officials.
Daniel Vorcaro, the Brazilian banker at the center of a probe into alleged fraud at failed Banco Master SA, has reached a cooperation agreement with federal authorities that is expected to significantly expand the scope of the investigation, according to a person familiar with the matter.
The agreement involves both the Prosecutor General's Office known as PGR and the Federal Police, the person said, adding that Vorcaro's testimony could implicate a wide range of individuals that includes high-ranking government officials and members of the FGC, the country's deposit insurance fund.
Under the signed agreement, Vorcaro will detail the inner workings of what authorities describe as a fraudulent empire that allegedly affected around 50 billion reais ($9.5 billion) from the FGC. As part of the process, he is required to provide specific dates, documentation, and descriptions of the procedures used to coordinate with public officials, the person said, requesting anonymity to discuss confidential legal proceedings.
The deal was first reported by local newspaper Folha de S.Paulo.
The Federal Police, PGR and FGC didn't immediately respond to requests for comment. Vorcaro's defense team didn't immediately respond to a request for comment.
Negotiations for the deal began shortly after Vorcaro's initial arrest in November, the person said. Vorcaro was detained for a second time on March 4, after authorities cited risks that he would tamper with ongoing investigations into the failed lender, as well as evidence that he had threatened both a former employee and a journalist. Vorcaro denies wrongdoing in the case.
His legal team is now negotiating terms of his release from federal custody that could include the use of an electronic ankle monitor and house arrest as part of a final agreement, according to the person, who added that Vorcaro has expressed frustration with the second arrest given that talks were underway.
Once depositions are completed, the Federal Police will submit the findings to Supreme Court Justice Andre Mendonça for final review and validation.