Brazilian senator Jaques Wagner, a target of police probing a banking scandal, is seen here in 2019

Brasília (AFP) - Brazilian police investigating a banking scandal carried out raids Thursday against targets including a senator allied with President Luiz Inacio Lula de Silva, bringing the affair closer to his government as he seeks reelection in October.

Police said they carried out 18 raids in three states as part of the probe into the failed Banco Master and shady ties between its director and public figures in Brazil, such as judges and members of Congress.

The targets of these raids included Jaques Wagner, a close ally of Lula and his government’s top representative in the Senate with the job of pushing the president’s legislative agenda in that chamber.

Police said they searched several properties associated with Wagner, who denied wrongdoing.

A Supreme Court order authorizing the raids says Wagner, 75, is suspected of receiving “undue economic advantages” from Banco Master that included money and an apartment, totaling more than a million dollars, and use of private planes.

In exchange for these perks, Wagner is alleged to have lobbied for the bank, trying to win Senate passage of a constitutional amendment raising the amount of money insured by a fund fed by banks themselves for times of crisis. The effort in the Senate failed.

“I never received money from anyone, much less Master,” Wagner told the TV channel Band News.

Early Thursday police broke down the doors of his home to search it, he said.

The affair erupted in November with the collapse of Banco Master, crushed under $7 billion in debt to 800,000 depositors who were later reimbursed by the government.

It quickly led to a probe of suspicious links between its director, the banker Daniel Vorcaro, and public figures in Brazil across the political spectrum. Vorcaro was arrested in March.

Senator Flavio Bolsonaro, the right-wing presidential candidate and Lula’s main rival, is accused of having financial dealings with the banker.