In a significant development in the ongoing Operation Compliance Zero investigation, Supreme Court Minister André Mendonça has authorized the transfer of former BRB president Paulo Henrique Costa. The decision, made on May 8, 2026, allows for his move to the 19th Battalion of the Military Police within the Papuda Penitentiary Complex in the Federal District.
The facility, commonly referred to as "Papudinha," is a specific unit within the larger Papuda complex. The transfer is expected to be executed on the same day the authorization was granted, marking a change in the detention conditions for the high-profile executive.
Paulo Henrique Costa has been held in custody in Brasília since April 16, 2026. His arrest was a direct result of a new phase of Operation Compliance Zero, a major investigation into financial irregularities and governance failures.
Investigators allege that Costa failed to adhere to proper governance practices during his tenure at BRB. Specifically, he is accused of permitting transactions with Banco Master that lacked adequate financial backing, meaning there were insufficient assets or cash reserves to honor the agreements made.
The core of the allegations involves a suspected bribery scheme. According to the investigation, Costa allegedly reached an agreement with Daniel Vorcaro, the owner of Banco Master. This purported deal involved six properties valued at approximately R$146 million.
In exchange for these assets, Costa is suspected of facilitating the financial scheme involving Banco Master. The transfer to a new detention facility is a procedural step as the legal case against the former banking executive continues to unfold.
Based on reporting from g1.