Supreme Court Justice Dias Toffoli has publicly denied having received any payments or having any relationship with Daniel Vorcaro, the controlling shareholder of Banco Master. The clarification was released after Brazil's Federal Police submitted a dossier to Supreme Court President Edson Fachin that included references to Toffoli found in data extracted from Vorcaro's mobile phone, which was obtained through a court-authorized search.
Toffoli is the magistrate assigned to oversee the investigation into Banco Master, and the way he has managed the case has attracted scrutiny both within the court and from outside observers. The bank, which accounted for under 1% of Brazil's banking assets, was liquidated in November after the central bank cited a severe liquidity crisis, sharp financial deterioration and serious breaches of regulations.
According to a second source familiar with the police submission, the report runs some 180 pages and contains mentions of alleged payments made to a company linked to Toffoli as well as references to invitations to social events. A third source said the complete report has been transmitted to the Prosecutor General's Office, which will determine whether to pursue further measures.
The head of the Federal Police did not ask that Toffoli be recused from the Banco Master matter, but the police noted that there are elements within the report that warrant additional scrutiny, one source said. Toffoli's public response, however, indicated he sees no basis to remove himself from the case.
In its statement, the justice's office said in part that Toffoli "never had any friendly relationship, much less a close friendship, with the investigated Daniel Vorcaro. Finally, the Justice clarifies that he has never received any money from Daniel Vorcaro or his brother-in-law Fabiano Zettel."
Officials familiar with the police file described the transmission of the material up the institutional chain, with the Supreme Court president receiving the document prepared by the Federal Police leadership. The subsequent referral to the Prosecutor General's Office leaves open the possibility of further procedural steps, although the police did not request immediate recusal.
The developments come amid continued attention to the Banco Master liquidation and the central bank's assessment of the institution's rapid deterioration. At this stage, authorities and prosecutors will review the report to decide whether additional inquiries or legal actions are warranted.
Summary
Justice Dias Toffoli rejected allegations of payments or a personal relationship with Banco Master controlling shareholder Daniel Vorcaro after the Federal Police sent a report to Supreme Court President Edson Fachin containing references to Toffoli in data extracted from Vorcaro's cellphone. The police report, said to be 180 pages, includes mentions of alleged payments to a company linked to Toffoli and social invitations. The full report was forwarded to the Prosecutor General's Office, and the police did not ask for Toffoli's recusal but indicated parts of the dossier required further examination.