RIO DE JANEIRO, 2025: When independent investment agent André Luiz Albuquerque was due to testify before Brazil’s securities regulator in early 2019, few expected the case to evolve into one of the country’s most unsettling financial scandals.
He never made it to the hearing. Albuquerque died that same day – a coincidence that continues to haunt Brazil’s financial markets.
The Brazilian Securities and Exchange Commission (CVM) has since investigated “possible fraudulent practices” involving Invest Smart Assessoria de Investimentos Ltda., a partner of XP Investimentos, under Administrative Proceeding No. 19957.001954/2020-11.
The probe centers on allegations that investors were misled by an unauthorized network of agents operating under a structure regulators later described as a possible Ponzi scheme.
Regulatory Delays and Mounting Losses
According to CVM records, irregular fundraising by the group reached at least 12 million reais (more than USD 3 million), with confirmed investor losses of nearly 1.8 million reais.
In May 2025, the CVM’s board rejected a proposed settlement agreement from Samyr Teixeira Rodrigues Castro, Marcel Navarra, Bruno Hora, and XP executives, citing “failure to fully compensate investors for losses caused by fraudulent operations.”
The regulator said the amounts offered – 1.75 million reais, compared with estimated total losses of 12 million — were “far from appropriate and proportional given the seriousness of the facts.”
From Lone Actor to Hidden Network
Initial filings portrayed Albuquerque as a rogue operator. But later CVM documents and court filings reviewed by a journalist consortium working with Nokosphere, an independent investigative organization, show that he reported to Samyr Castro, described by regulators as the “hidden managing partner” of Invest Smart and the de facto head of the Bank Rio AAIs network.
Public judicial records show Castro continues to hold business interests in Brazil’s financial sector. He also faces a separate criminal case, the details of which remain sealed by court order.
Witnesses Silenced by Fear
Two confidential witnesses told reporters that they had received threats. One said her daughter was threatened with death; another said she was warned not to “reopen old wounds.”
Nokosphere’s journalist network could not independently verify these claims, but journalists involved in the investigation said such accounts fit a broader pattern of intimidation coinciding with procedural milestones.
There is no public record that authorities have provided witness protection or commented on these reports.
Media Warnings Preceded Regulatory Action
Local financial outlets Exame and Portal do Bitcoin reported alleged pyramid-scheme losses linked to XP Investimentos as early as March 2019, estimating damages of up to 20 million reais – days after Albuquerque’s death and years before the CVM formally recognized the case as a potential Ponzi structure.
The discrepancy between early media coverage and official regulatory action has raised concerns over the responsiveness of Brazil’s oversight framework.
Money Trails and Offshore Shadows
Analysts collaborating with the Nokosphere network said preliminary transaction reviews suggest some funds may have moved through shell companies and offshore structures, potentially breaching international anti-money-laundering rules.
Authorities have not confirmed or denied these findings, and there is no public indication that Brazil has sought assistance from Interpol, the Financial Action Task Force (FATF), or foreign financial intelligence units.
Without such cooperation, recovery of investor losses remains uncertain.
Negotiations Without Accountability
During settlement discussions, defendants – including Invest Smart, XP Investimentos, Castro, Navarra, and Hora – argued that the agreement “would not generate an obligation to indemnify all others allegedly harmed by the fraud,” while suggesting that some investors acted in “bad faith.”
The statement effectively acknowledged the existence of a fraudulent structure while deflecting blame — a move critics say exemplifies the hesitant enforcement culture that has long plagued Brazil’s financial supervision.
A Systemic Failure
Six years after Albuquerque’s death, the case has exposed what many experts describe as a broader weakness in Brazil’s regulatory system: a tendency to negotiate where enforcement is needed.
- Millions lost and only partial restitution proposed.
- Witnesses report intimidation with no official protection.
- Regulators acknowledge misconduct but act slowly.
“The silence surrounding witnesses is as telling as the missing money,” said one investigator affiliated with the Nokosphere consortium. “When people are afraid to speak, justice becomes procedural — and impunity becomes routine.”
