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Brazil's Supreme Court faces internal probe over Banco Master ties

A multibillion-dollar fraud investigation has reached the bench of Brazil’s Supreme Court, forcing justices to decide Tuesday whether to launch an unprecedented inquiry into one of their own. The proceedings center on Justice Alexandre de Moraes and his alleged financial connections to the now-liquidated Banco Master.

Brazil's Supreme Court faces internal probe over Banco Master ties
Photo: Business Person

The controversy stems from a federal police report disclosed by Justice Andre Mendonca, which alleges that Banco Master owner Daniel Vorcaro communicated directly with Moraes regarding a potential escape plan. Court documents reveal that a law firm owned by Moraes’ wife held a $24 million consulting contract with the lender before its collapse in November 2025. Moraes has denied any misconduct, instead accusing Mendonca of abusing judicial authority by leaking the sensitive material. Chief Justice Edson Fachin has scheduled a separate hearing for next week to address those claims of procedural overreach.

This judicial friction arrives during a volatile election cycle, with Senator Flavio Bolsonaro—himself under investigation for alleged money laundering tied to the same bank—attempting to link the court’s internal crisis to the administration of President Luiz Inacio Lula da Silva. While the high court is set to deliberate on the probe, insiders suggest a definitive ruling remains unlikely on Tuesday. Several justices are expected to raise procedural objections, a move that would effectively stall the investigation and prolong the uncertainty currently gripping the judiciary.

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