Brazil’s CVM (Comissão de Valores Mobiliários) issued combined fines exceeding R$200 million on September 8, 2026, against 16 entities and individuals involved in a fraudulent capital markets operation centered on the Brazil Realty FII (Real Estate Investment Fund). The penalties stemmed from three separate administrative proceedings that uncovered organized fraud in the distribution of fund shares, coupled with fiduciary duty violations and obstruction of regulatory oversight.
- Primary Case: PAS 19957.007976/2020-94 involving 17 defendants and Banco Master S/A
- Largest Single Fine: R$24 million against Sefer Investimentos Distribuidora de Títulos e Valores Mobiliários Ltda.
- Key Violations: Fraudulent securities operations, breach of fiduciary duties, false information disclosure, and regulatory obstruction
- Decision Date: September 8, 2026 (unanimous ruling by CVM board)
The primary case centered on irregularities in the issuance and distribution of Brazil Realty FII shares. Benjamim Botelho de Almeida, Daniel Bueno Vorcaro, and Henrique Moura Vorcaro each received R$20 million fines for fraudulent operations, while Banco Master S/A in liquidation was penalized R$12.5 million. Additional defendants faced fines ranging from R$5 million to R$24 million. The CVM identified systematic failures in due diligence, investor disclosure requirements, financial statement reporting, and shareholder approval procedures under various securities regulations.
A second case resulted in the acquittal of Milo Investimentos S.A. and Pedro Junqueira Moll of market manipulation charges involving artificial conditions affecting supply, demand, and pricing of securities. In a third proceeding, the CVM fined Carolina Pestana Coelho R$40,000 for failures as former investor relations director at Ybyrá Capital S.A., including non-disclosure of required shareholder meeting information and delayed regulatory form filings.
All convicted parties retain the right to appeal to Brazil’s Financial System Resource Council. The CVM is responsible for regulating and supervising Brazil’s securities markets and capital formation activities.
