Brazilian federal police have launched "Operation Miragem" to investigate Banco Digimais, controlled by Bishop Edir Macedo of the Universal Church of the Kingdom of God, for alleged financial fraud. The investigation, initiated after reports from the Central Bank of Brazil, suspects bank administrators manipulated financial statements and regulatory records to conceal the true financial health of the institution and present a false appearance of solvency. These alleged fraudulent activities were also reportedly designed to facilitate irregular operations, potentially benefiting the bank's controlling company.
The police probe, which began on June 23, 2026, involved the execution of nine search and seizure warrants in São Paulo and authorized the blocking of up to $670 million in assets belonging to the investigated parties, along with the lifting of their banking and tax secrecy. Among those targeted are current and former directors, board members, and companies linked to Digimais, including Bishop João Urbaneja and his son Thiago Urbaneja, and owners of the ID group which manages bank funds. Edir Macedo himself was not targeted as he resides outside Brazil.
The alleged scheme bears similarities to the modus operandi of Banco Master, which was liquidated, including the supervaluation of assets to inflate balance sheets. Examples cited include re-evaluating old judicial rights from a 1967 lawsuit, valuing titles from Vale at $650 million, a Pernambuco land plot at $150 million (reportedly worth less than $10 million), and a vehicle portfolio at $3.5 billion. One specific alleged manipulation involved creating a fictitious revenue of $199 million in the bank's balance sheets.
These maneuvers, according to the police, included the successive changing of independent auditors to avoid scrutiny. The bank also allegedly attracted deposits through Certificates of Deposit (CDBs) offering rates above 110% of the CDI, significantly higher than market averages, similar to Banco Master's strategy. The Central Bank estimates Digimais requires an injection of over $7 billion to meet liquidity rules and continue operating.
The ongoing investigation has significantly complicated Banco BTG Pactual's agreement to acquire Digimais, signed in April. The acquisition, which was already subject to regulatory approvals from the Central Bank and Cade, as well as an agreement with the FGC, is now considered much less likely to be finalized. Fitch, a credit rating agency, downgraded Digimais's long-term debt rating and withdrew its coverage a day before the police operation, citing a lack of reliable financial information.
