The Federal Police (PF) of Brazil executed a search and seizure operation on the residence of Paulo Sérgio Neves de Souza, a former director of the Central Bank's inspection department, and Bellini Santana, another official allegedly involved in fraud at Banco Master. The operation was authorized by the Minister of the Supreme Federal Court (STF), André Mendonça, who previously ordered their removal from their roles in the institutions. This legal action marks a significant escalation from previous administrative measures taken against the individuals by the current president of the Central Bank, Gabriel Galípolo.

Paulo Sérgio Neves de Souza served as the director of inspection at the Central Bank from 2019 until 2023 when Roberto Campos Neto was president. During his tenure, he authorized the acquisition of Banco Máxima by Daniel Vorcaro, who later renamed it Banco Master. The actions taken against Souza and Santana have now transitioned from administrative dismissals to judicial proceedings, reflecting the gravity of the allegations against them and the potential for legal consequences.

Both Souza and Santana had been forced to request leaves of absence from their senior departmental positions in January. Their current situation raises questions about the oversight and regulatory practices within Brazil's financial institutions. The ongoing investigation signals a broader concern regarding fraud and misconduct within the banking sector, emphasizing the need for transparency and accountability among financial regulators as well as the institutions they oversee.