A major property scam in the Algarve has been uncovered, involving fraudulent financing amounting to around 40 million euros. The Judicial Police (Polícia Judiciária – PJ) have arrested six suspects in connection with the scheme, which involved the acquisition of 300 properties through fraudulent means.
Key Takeaways
- Six suspects arrested in the Algarve for real estate fraud.
- Fraudulent financing amounted to around 40 million euros.
- Over 300 properties acquired and more than 200 fraudulent loans arranged.
- Operation "Orange" led to the detention of four men and two women.
- Seizure of dozens of properties, 14 vehicles, one boat, computer equipment, and substantial documentary evidence.
The Operation and Arrests
The PJ conducted the "Orange" operation, which resulted in the arrest of four men and two women on suspicion of crimes including criminal association, qualified fraud, money laundering, and document forgery in the real estate sector. The operation also involved seven home searches and two business searches, leading to the seizure of numerous assets.
The Organized Group
The investigation revealed that the suspects were part of an organized group with various nationalities, residing in the Algarve and having connections to the diaspora in other countries. This group established an economic organization in the real estate sector, fully financed through fraudulent bank loans.
Modus Operandi
The group’s modus operandi involved:
- Establishing Portuguese companies to acquire properties.
- Transferring these properties to third parties through simulated transactions.
- Using forged documents to obtain mortgage loans from Portuguese banks.
- Securing loans in amounts much higher than the initial acquisition cost.
- Appropriating the difference and exploiting the properties for tourist and residential accommodation.
Search and Seizure Operations
The Évora DIAP (Department of Investigation and Penal Action) conducted various search and seizure operations in the Algarve, specifically in Albufeira, Carvoeiro (Lagoa), Portimão, and Quarteira (Loulé). The detainees will now face initial judicial interrogation for the application of coercive measures.
Conclusion
This massive property scam highlights the need for stringent measures and vigilant oversight in the real estate sector. The PJ’s successful operation has brought to light the extent of fraudulent activities and the importance of international cooperation in tackling organized crime.
