Authorities seize 118 properties after foiling long-running fraud that used fake documents to secure millions in bank loans
Portugal’s Public Prosecutor’s Office (Ministério Público, or MP) has formally charged 20 people linked to an international fraud scheme that secured over €41 million in bank loans using falsified documents to acquire at least 284 properties in the Algarve.
According to the MP, the defendants operated what it describes as a “sophisticated transnational criminal organisation” over nearly a decade which submitted over 300 fraudulent mortgage applications to Portuguese banks between December 2015 and June 2024.
Authorities say the network forged documents such as payslips, bank statements, income declarations, and employer statements – many appearing to originate from the UK – in order to mislead financial institutions into granting housing loans, primarily to foreign nationals with little or no visible income or assets.
The operation resulted in the acquisition of at least 284 properties in the Algarve. So far, 118 of these have been seized, worth at least €21.5 million, along with 22 vehicles, three boats (including a yacht valued at €320,000), cash, and bank account balances.
Investigators say the group profited not only from inflated loan amounts but also from repeated use of “front people” in staged sales designed to secure additional credit. These individuals were allegedly used to conceal ownership and help rent out the properties, generating illicit income, the MP says.
The prosecution has requested the forfeiture of approximately €26.4 million, to be paid jointly by the alleged leaders of the group, representing the proceeds of the fraudulent transactions.
The accused face charges including criminal association, aggravated fraud, money laundering, document forgery, and making false statements. According to the Public Prosecutor, several of the loans are already in default, and further financial damage to the banking sector may still come to light.
One suspect remains in custody, while two others are under house arrest with electronic monitoring. The case is currently in the pre-trial phase – at this point, the court is waiting to see if any of the accused will ask for what’s called an “instruction phase” (in Portuguese, fase de instrução). This instruction phase is essentially a review requested by the defence, where a judge looks more closely at the evidence to decide if there’s enough to justify going to trial. It’s a chance for the accused to try to have the case dismissed or reduced before it reaches court. If no one from the defence asks for this review, then the case will automatically move forward to a full trial, where all the evidence will be presented and judged in court.
The investigation, led by the Regional Department of Criminal Investigation and Prosecution in Évora, has been ongoing since early 2021, with support from the southern division of the PJ police and technical experts from the Attorney General’s Office.
