Brazil’s Supreme Court has ordered the assets of veteran entrepreneur Nelson Tanure to be frozen as part of an investigation into failed lender Banco Master SA, according to a January 6th decision seen by Bloomberg.
Prosecutors sought the asset freeze after a federal police investigation alleged that Tanure acted as a hidden partner in Banco Master and exerted influence over the bank through the use of funds and “complex corporate structures,” Justice Dias Toffoli wrote in the decision.
Tanure, a well-known investor with a reputation for investing in distressed assets, was among the targets of a second phase of the Banco Master investigation, known as Operation Compliance Zero, Bloomberg reported. As part of that probe, the asset freeze was imposed and Tanure’s mobile phone was seized.
Toffoli also authorized police action against Banco Master CEO Daniel Vorcaro and some of his relatives, the news outlet reported last week.
Tanure’s legal team has denied any ties between the businessman and Banco Master.
In a statement cited by Bloomberg, his lawyer said Tanure never held shares in the bank and never had investments that could convert the lender’s debt into equity.
In November, Brazil’s central bank ordered Banco Master to be liquidated, citing a “severe liquidity crisis” and violations of financial regulations, Reuters reported on Monday. The collapse of the lender has drawn scrutiny in part because it grew quickly through the issuance of high-yield debt marketed as covered by Brazil’s private deposit guarantee fund, Reuters said.
Federal prosecutors believe that the probe will ultimately take four to six months as investigators review court-authorized access to the banking and tax records of 101 individuals and companies in addition to evidence seized from 42 locations, Reuters reported last week.
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