Brazilian presidential candidate Flávio Bolsonaro faces a Supreme Court investigation over alleged corruption, money laundering and tax evasion.
The case centers on money that banker Daniel Vorcaro allegedly provided to finance a film about Flávio’s father, former President Jair Bolsonaro.
Brazil’s Supreme Court unsealed documents late Thursday. The documents show that investigators are examining a 61 million reais ($12 million) payment from Vorcaro for the unreleased movie The Dark Horse.
The development comes just weeks before Brazil’s presidential election. The first round takes place on October 4. Flávio Bolsonaro now faces President Luiz Inácio Lula da Silva in a closely watched race.
Flávio Bolsonaro denies wrongdoing
Flávio Bolsonaro has denied any wrongdoing.
He said Friday that he sought private investment for the movie. He also welcomed the release of the court documents.
“I want transparency in everything,” Flávio told journalists during a campaign event in Manaus. He also said there was nothing wrong with the film.
The investigation does not prove that Flávio committed a crime. Instead, prosecutors are examining how the money moved and whether authorities received proper reports about the transactions.
Justice André Mendonça opened the investigation in July after Brazil’s Federal Police requested action.
Banco Master scandal reaches Bolsonaro family
The investigation forms part of the wider Banco Master scandal.
Authorities arrested Vorcaro in March. Investigators accuse the banker of defrauding hundreds of millions of dollars from Banco Master clients and state pension funds through questionable investments.
The scandal has also drawn several senior Brazilian officials into the investigation.
According to the newly released documents, investigators are examining whether the film money also covered expenses linked to Flávio’s brother, Eduardo Bolsonaro.
One document says Eduardo helped determine how Vorcaro’s money could move through the United States.
Prosecutors also suspect that some of the funds supported Eduardo’s activities in the US and helped promote Flávio’s political agenda with the Trump administration.
Eduardo has rejected the allegations. He said investigators were trying to repeat what he described as the same process used against his father.
Federal Police search film operation
Federal Police also seized documents Thursday from the film’s production company.
Officers also searched the premises of lawmaker Mário Frias. Frias reportedly sent about 2 million reais ($400,000) to a nonprofit connected to the movie.
Both Frias and the production company deny wrongdoing.
Meanwhile, the Supreme Court has faced growing political pressure over the Banco Master investigation.
Mendonça kept the case largely out of public view for weeks. That silence prompted allies of Lula to accuse the justice of protecting Flávio Bolsonaro.
Mendonça later released the documents after Chief Justice Luiz Edson Fachin demanded greater transparency.
Case could affect Brazil election
Political scientist Paulo Henrique Paschoeto Cassimiro said the investigation could hurt Flávio’s campaign.
The case arrives only weeks before voters head to the polls. It also gives Lula another issue to raise against his main rival.
Lula has already discussed the Banco Master scandal during interviews and campaign appearances.
“Banco Master was created in the Bolsonaro administration,” Lula said in a recent interview. He added that Vorcaro faced arrest and that authorities closed the bank during his administration.
Brazil’s Central Bank shut down Banco Master in November. The bank had more than $16 billion in assets.
For Flávio Bolsonaro, the investigation creates another major challenge before election day. He must now defend his campaign while authorities continue to examine the money behind the film.
The case could also keep the Banco Master scandal at the center of Brazil’s presidential race in the weeks ahead.
