Published reports say Sen. Flavio Bolsonaro negotiated a multimillion-dollar sponsorship deal to finance a film about his father, former President Jair Bolsonaro, with a banker now jailed on suspicion of leading a criminal organization involved in financial fraud. Photo by Andre Borges/EPA
May 14 (UPI) — Just five months before Brazil’s October elections, the presidential campaign of right-wing Sen. Flávio Bolsonaro has become entangled in what authorities describe as the country’s largest recent banking fraud case.
According to reports published by Intercept Brasil, Bolsonaro negotiated a multimillion-dollar sponsorship deal to finance a film about his father, former President Jair Bolsonaro, with a banker now jailed on suspicion of leading a criminal organization involved in financial fraud.
The Brazilian news outlet released audio recordings and messages allegedly tied to negotiations between the senator and Daniel Vorcaro, owner of the collapsed Banco Master. Vorcaro is being held in pretrial detention as part of a financial and political scandal that has expanded to include Brazilian politicians and judges.
The scandal erupted after Brazil’s Federal Police intercepted Vorcaro’s phone messages, which reportedly reveal a close relationship between the two men — with Flávio Bolsonaro referring to the banker as “brother.”
In the conversations, Bolsonaro allegedly pressured Vorcaro to release payment for a sponsorship worth 134 million reais, or about $26 million, according to Brazilian outlet G1 Globo. The funds were intended for the Hollywood production of The Dark Horse, a biographical film aimed at improving Jair Bolsonaro’s public image.
In one audio recording, Flávio Bolsonaro discussed the urgency of the payments and the importance of the film project, according to Agência Brasil.
“Even though you gave us the freedom to hold you accountable, I feel uncomfortable having to ask,” the senator said in the recording. “We are at a crucial point in the movie’s production, and because many payments are still pending, everyone is tense, and I worry this could have the opposite effect from what we expected for the film.”
Authorities say the controversy extends beyond the size of the sponsorship and centers on the source of the money. Brazil’s Central Bank liquidated Banco Master after discovering an accounting shortfall estimated at between $7.6 billion and $10 billion.
Investigators allege the bank operated a scheme involving fraudulent securities sales and the theft of pension savings belonging to public-sector workers. Brazilian media reported that while retirees lost savings, members of the banker’s family purchased luxury homes in Miami and private aircraft.
Hours before the audio recordings became public, Flávio Bolsonaro denied having a business relationship with Vorcaro and dismissed the allegations as false during television interviews.
After the recordings surfaced and his voice allegedly could be heard in the conversations, the senator acknowledged contact with the banker, but argued the deal involved legitimate private sponsorship.
Bolsonaro later wrote on X that he was the victim of political persecution and said the leaked chats only showed a lawful business negotiation.
“It was a son seeking private sponsorship for a private film about his father. Zero public money,” the senator wrote, insisting he did not know the banker’s funds allegedly originated from purported fraud.
The market reaction was immediate. After publication of the recordings, the São Paulo stock exchange fell nearly 2% and the Brazilian real weakened against the U.S. dollar, reflecting investor concerns over political instability.
Recent polls show Flávio Bolsonaro statistically tied with President Luiz Inácio Lula da Silva in a potential runoff election.
Government allies have launched an offensive to capitalize on the scandal, demanding Bolsonaro’s removal from office through ethics proceedings in the Senate. According to Gazeta do Povo, lawmakers are seeking to suspend his political rights for eight years.
Those aligned with Lula also are pushing to create a congressional investigative committee into Banco Master. The proposed inquiry would seek access to Bolsonaro’s banking and tax records to trace the millions of reais allegedly negotiated in the sponsorship deal.
Left-wing parties argue the movie financing arrangement served as a front for money laundering and illicit enrichment, linking the failed bank’s expansion to political protection networks allegedly built during Jair Bolsonaro’s administration.