Prosecutors seek to freeze funds linked to Master for R$ 640 million shortfall in RioPrevidência

The Rio de Janeiro State Prosecutor's Office has requested a court to freeze the assets of three asset management firms associated with Master Corretora, an investment arm of a conglomerate managed by Daniel Vorcaro. These firms allegedly received R$ 641.4 million in funds from RioPrevidência, the state's pension fund, which suffered compromised investments following the liquidation of Banco Master last November.

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the losses of RioPrevidência “reach alarming levels.”

The pension fund is currently under investigation by the Federal Police as part of "Operation Barco de Papel" (Paper Boat Operation). This investigation is examining whether RioPrevidência's management made reckless investments totaling R$ 970 million in Banco Master, a claim the autarchy denies.

A team of nine state prosecutors filed three lawsuits against the Revolution and Texas I FIA funds, both linked to Master. The lawsuits assert that RioPrevidência's losses have reached "alarming levels." In the Revolution fund, RioPrevidência invested R$ 481.4 million. Although the fund's current assets are estimated at R$ 567.8 million, its portfolio remains confidential and is reportedly composed mainly of private credit assets offering returns up to 180% of the CDI, a rate the prosecutors deem "economically anomalous."

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economically anomalous

The prosecutors are seeking to block the remaining assets of Master and prevent them from hindering RioPrevidência's requested withdrawal of funds, scheduled for August 17. The measure also seeks to seize assets from the management firm Acura Capital and its directors, Fernando Luiz de Senna Figueiredo and Ana Cristina Guerreiro Bezerra, to preserve assets in case of future liability and compensation for losses. In the case of the Texas I FIA fund, RioPrevidência's R$ 150 million investment has reportedly dwindled to R$ 14.8 million, a devaluation exceeding 90% in less than a year. Prosecutors described this as a "trap orchestrated by the administration and management of Texas I FIA."

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RioPrevidência was the victim of a trap orchestrated by the administration and management of Texas I FIA, which sold public quotas of a fund backed by a baseless stock to the public entity.