Brazil’s federal police carried out search and seizure warrants against businessmen Daniel Vorcaro and Nelson Tanure as part of an investigation into alleged fraud at Banco Master, according to a Supreme Court ruling authorising the operation.

The action marks the second stage of a probe launched in November, when Vorcaro was arrested on the same day Brazil’s central bank ordered Banco Master into liquidation, Reuters reported.

He was later released under court-imposed measures, including the use of an ankle monitor.

Police said the new phase targets suspected offences such as criminal organisation, fraudulent management of a financial institution, market manipulation and money laundering.

Vorcaro’s lawyers said they were aware of the warrants and that their client was cooperating with investigators and ready to clarify “the facts and a swift conclusion of the inquiry”.

Tanure’s legal team said he was a Banco Master client and that inquiries would find no wrongdoing in that relationship. They added that his mobile phone was the only item seized.

Police said 42 warrants were executed and that officers seized cash, vehicles, watches, phones, documents and a firearm. Authorities are seeking to freeze assets exceeding BRL5.7bn ($1.1bn).

The operation follows comments by Finance Minister Fernando Haddad, who said the case could be “the largest banking fraud in the country’s history”.