By Brazil Stock Guide – Brazil’s securities regulator has been investigating Reag, a former fund manager now under liquidation, over a series of transactions involving securities issued by the defunct Banco do Estado de Santa Catarina (Besc). The probes date back to 2022 and span three separate administrative enforcement cases that examine alleged market disclosure failures, irregular asset purchases and weaknesses in internal controls.
One of the cases, opened in 2022, centers on the acquisition of Besc-linked securities through five investment funds. The proceedings include Reag and six other defendants and remain confidential. The most recent procedural update shows that a reporting commissioner was appointed in November 2025, moving the case closer to a formal ruling.
Reag, which rebranded last year as CBSF Distribuidora de Títulos e Valores Mobiliários, had its liquidation ordered by Brazil’s central bank on Jan. 15 amid a broader investigation into Banco Master. Regulators said they identified atypical transactions lacking clear economic rationale between 2023 and 2024 in funds administered by Reag. The central bank said the decision followed “serious violations of the rules governing institutions within the National Financial System.”
The firm was also scrutinized in a 2025 police operation that examined the alleged use of investment funds for money laundering linked to organized crime. Investigators identified the use of Besc share certificates, known as “cartulas,” in transactions that inflated fund values and allowed capital to be shifted across vehicles connected to Reag and Banco Master.
A second CVM case, opened in 2024, accuses Reag of failing to disclose material information after one of its funds acquired a significant stake in GetNinjas SA (GETN3), a publicly traded services marketplace. In May 2025, Reag proposed a settlement involving a payment of 300,000 reais, but regulators rejected the offer later that year. The case is expected to proceed to judgment, though no date has been set.
The third proceeding was launched in 2023 against Reag, its director Silvio Gersztel, and MDL Trust Serviços Fiduciários, citing repeated failures to maintain adequate internal controls. Reag and Gersztel reached settlement agreements in 2024, paying 360,000 reais and 180,000 reais, respectively, which led to the closure of the case against them. MDL Trust was later fined 255,000 reais in a ruling issued in April 2025.
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