By Ricardo Brito
BRASILIA, Jan 14 (Reuters) - Brazil's federal police served search and seizure warrants against businessmen Daniel Vorcaro and Nelson Tanure on Wednesday as part of an investigation into
alleged fraud at Banco Master, two sources familiar with the matter told Reuters.
The raids are part of the second phase of a police operation launched in November, which at the time led to Vorcaro's arrest on the same day the Brazilian central bank ordered Banco Master's liquidation.
Vorcaro was later released, but had to wear an ankle monitor.
Vorcaro's lawyers said in a statement on Wednesday they were aware of the warrants and the businessman was fully cooperating with authorities and available to provide clarification "of the facts and a swift conclusion of the inquiry."
Tanure, an investor in distressed companies and a major shareholder in power firm Light and oil company Prio, did not immediately respond to requests for comment.
SECOND PHASE OF POLICE PROBE OF SUSPECTED CRIMES
Federal police said in a statement the second phase of the operation investigates suspected crimes including criminal organization, fraudulent management of a financial institution, market manipulation, and money laundering.
Authorities executed 42 warrants authorized by the Supreme Court and seized cash, watches, cars, phones, documents and a firearm, images released by the police showed.
Police are also seeking to freeze assets totaling more than 5.7 billion reais ($1.1 billion).
GOVERNMENT SUGGESTS LARGE-SCALE BANKING FRAUD
The operation comes one day after Finance Minister Fernando Haddad warned the case could represent "the largest banking fraud in the country's history."
While Banco Master accounts for less than 1% of total banking assets in Brazil, its collapse has drawn scrutiny due to its heavy reliance on high-yield debt, guaranteed by the country's private guarantee fund, FGC.
Investors are now awaiting potential payouts from the FGC amounting to 41 billion reais ($7.64 billion).
($1 = 5.3721 reais)
(Reporting by Ricardo Brito in Brasilia; Additional reporting by Luciana Magalhaes in Sao Paulo and Marcela Ayres in Brasilia; Writing by Isabel Teles; Editing by Gabriel Araujo, Alexander Smith and Bernadette Baum)
