Four solicitors were also arrested
A real estate agent believed to be the mastermind behind an elaborate real estate scam in the Algarve that reportedly defrauded over 20 victims, mostly foreign investors, out of over €7 million, has been placed in preventive custody following a court hearing on Friday.
The woman, who holds Portuguese and German nationality, was arrested on Thursday as part of Operation “Chave na Mão” (Key in Hand), an investigation led by the Portuguese PJ police.
According to PJ sources, four solicitors were also detained in connection with the case. Three of them have been barred from practicing, while the fourth was released under the ‘Termo de Identidade e Residência’ regime, meaning she must report to police whenever asked. All five suspects have been prohibited from contacting each other.
The main suspect allegedly used personal ties – including friendships and family relationships – with her victims, most of them foreigners, to carry out her scheme, which involved marketing and selling properties without the knowledge of their rightful owners.
According to the judicial police force, victims were fooled into signing purchase agreements for homes that were never actually for sale. The suspect reportedly conducted business through solicitors’ offices in the Algarve, where she signed promise-to-purchase contracts using falsified documents. Says PJ police, these transactions appeared legitimate.
In some cases, victims handed over more than €1 million as down payments – funds that were allegedly kept by the main suspect.
Following the initial investigation, police carried out seven searches, including three at private residences and four at solicitors’ offices, seizing large volumes of documents, computer equipment, cash and jewellery.
“There was a familiarity with the real estate agent, which extended into a wider circle of investors,” said Joaquim Trindade, director of the PJ in Portimão. He added that the agent’s bilingual background helped gain the victims’ confidence.
The group is under investigation for aggravated fraud, document forgery, and money laundering within the real estate sector. Authorities estimate the scheme caused over €7 million in losses, affecting nearly 30 individuals.
“Most of the victims never visited the properties in question,” Trindade said during a press conference at the PJ headquarters in Faro.
While many victims are believed to be German, others include Americans, Poles, French, and a few Portuguese nationals.
The investigation, which began in mid-2022, is ongoing. Authorities anticipate the number of victims may continue to grow as more complaints come forward and documents are reviewed.
