A legal investigation has been launched involving 11 defendants, which includes eight individuals and three corporations, accused of crimes such as fraud in obtaining subsidies or qualified grants and money laundering.
The case revolves around funds provided by the European Regional Development Fund (ERDF), the Rural Development Programme (PRODER), and the Incentive System for Trade Modernization Projects (MODCOM).
The Public Prosecutor’s Office (MP) revealed that in 20 community funding projects, the defendants acted either as sponsors themselves or supported other sponsors by leveraging their business relationships and utilizing their knowledge and roles to facilitate these activities.
The criminal activities were predominantly orchestrated by a family group, generating nearly 2.3 million euros in dividends between 2009 and 2010.
These projects were characterized either as non-repayable or, in cases of repayment, were structured without interest charges and with the possibility of conversion to non-repayable status via the award of bonuses.
The Porto Prosecutor General’s Office (PGR) reported that within these projects, the defendants manufactured false invoices, inflating values and/or listing nonexistent goods or services, thereby fabricating documentation for reimbursement claims submitted to oversight bodies.
They are additionally suspected of falsifying increases in the share capital of promoting companies when the financing required own capital and of using alternative invoicing and financial channels to reclaim the amounts documentarily verified as paid.
Among the defendants are three certified accountants, a finance director, and another defendant formerly associated with the Development Association of the Alta Tâmega region (ADRAT), an intermediary body responsible for project analysis and supervision.
The other defendants included promoters, beneficiaries, accountants, and suppliers.
“This criminal activity was led by a family group that also maintained connections across various companies,” the statement noted.
The PGR further detailed that the criminal activities resulted in dividends totaling 2,235,900 euros, an amount that the Public Prosecutor’s Office has motioned to be forfeited to the State.
The MP also seeks the defendants’ conviction to include ancillary penalties such as deprivation of the right to receive public entity or service-granted subsidies or grants, public announcement of the conviction decision, and complete restitution of the illicitly obtained amount.
