Bahamas Sets 8 October Hearing on Banco Master Fund
Banco Master's liquidator alleges a Bahamas fund topped a structure that moved money out of the failed Brazilian bank, some of it into Aspen and Miami homes. The post Bahamas Sets 8 October Hearing on Banco Master Fund appeared first on The Rio Times .
The Supreme Court of The Bahamas is set to hear a petition on 8 October to wind up the Banco Master Master Fund. The fund, registered in The Bahamas, is believed to have moved billions of dollars away from Brazil's failed Banco Master bank, according to court papers from the bank's liquidator. Some of the money allegedly ended up in luxury homes in Colorado and Florida.
The Banco Master fund case highlights how a Brazilian bank collapse can impact American real estate and offshore finance. The Supreme Court has appointed provisional liquidators to take control of the fund. The Banco Master bank was controlled by banker Daniel Vorcaro, who is currently under investigation in Brazil. The fund allegedly used a complex scheme involving related parties to swap cash and inflate asset prices, which were then moved through a chain of Brazilian investment funds to FAEX.
FAEX, a Bahamian offshore holding company, allegedly held assets worth $5.2 billion as of May 26, 2026. The liquidator alleges that FAEX had no employees and no legitimate trading business, and cites a $3.4 billion growth in a single year for a single investment. The affidavit also claims that $1.6 billion was misappropriated through the fund.
Vorcaro's properties in Aspen, Colorado, and Miami, Florida, were allegedly purchased with Banco Master funds, with no rent paid. The case has similarities to the FTX collapse, Madoff fraud, and Stanford fraud. The Bahamas court recognized the Brazilian liquidation, allowing the foreign liquidator to act for five Banco Master entities in the islands.
The liquidator's Bahamian lawyers note that the resignation of two corporate directors without replacement is contrary to Bahamian law. The liquidator's joint provisional liquidator is a forensic accountant working with counterparts in Bahamas, UK, and BVI. Vorcaro is currently detained in Brazil, and his lawyers have requested his release.
The process is being handled through courts, and any recovered money will go to the bank's creditors.
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