“The Brazilian liquidation proceeding shall be given full force and effect and be binding on and enforceable in the United States against all persons and entities,” the ruling states. The decision was issued a day after a hearing attended by Vorcaro’s defense team and lawyers for EFB Regimes Especiais de Empresas, the court-appointed liquidator designated by Brazil’s Central Bank.

Vorcaro’s attorneys had asked the U.S. court not to recognize the bank’s liquidation, as requested by the liquidator. In their arguments, they cited an inspection ordered by a justice of Brazil’s public spending watchdog, the TCU, and claimed there was a possibility that the liquidation could be reversed.

Information about the defense’s petition was first reported by O Globo newspaper and confirmed by Valor. According to documents reviewed by the newspaper, the law firm King & Ruiz, which represents Vorcaro, argued that Banco Master’s liquidation is a “controversial” matter in Brazil. “Although liquidation may be inevitable in some cases, it is far from clear that liquidation is inevitable for Banco Master,” the filing said.

The defense team maintained that recognizing the liquidation at this stage would be “premature” and argued that, although the liquidator states that all of his actions are ultimately subject to “judicial review,” this does not prove that the case is in fact being reviewed by a “foreign court,” as required under U.S. law.

Vorcaro also argued that the liquidator is seeking excessive powers over Banco Master’s assets in the United States. “The exercise of these powers could irreversibly and adversely affect Banco Master’s assets in the United States,” the defense team said.

In its rebuttal, EFB stated that Banco Master’s liquidation stems from the discovery of an “enormous fraud” and followed a series of failed attempts to sell control of the group. The filing, prepared by the law firm Sequor Law, also noted that the Central Bank’s investigations triggered a wave of coverage in domestic and international media outlets, “which began to associate Mr. Vorcaro’s life of luxury and extravagance, including the acquisition of properties and assets in foreign jurisdictions, with potential frauds committed to the detriment of [Master’s] account holders and investors.”

The liquidator’s attorneys said Vorcaro is suspected of having transferred large sums to himself at the expense of Banco Master’s creditors and investors, and that he was released from jail only on the condition that he wear an electronic ankle monitor.