Portugal’s Judicial Police (PJ) arrested a 58‑year‑old lawyer on 15 July in Odivelas, on the northern outskirts of Lisbon, after investigators said he siphoned an estimated €1.2 million from the bank accounts of foreign clients who had hired him to handle their Golden Visa (Authorization of Residence for Investment – ARI) applications.
The National Anti‑Corruption Unit, acting under the direction of Lisbon’s Department of Investigation and Penal Action (DIAP), alleges the lawyer obtained access to “numerous bank accounts held by clients of foreign nationality” by claiming it would speed up their visa applications. Between 2023 and March 2026 he allegedly transferred the funds to his own accounts, where the money was “entirely dissipated on personal expenses.”
- Victims: 33 identified foreign nationals (the number is expected to rise).
- Charges: aggravated fraud, breach of trust, and money laundering.
- Judicial step: the suspect was scheduled for a first judicial interrogation on 16 July to determine coercive measures.
- Name and victim nationalities: not disclosed by authorities.
Why the scheme worked
Madalena Monteiro, a Lisbon‑based lawyer and founder of Liberty Legal, explains that the alleged misconduct hinged on a mandate that is never required for Golden Visa applications. The standard process allows investors to:
- Transfer the required investment amount directly from abroad to the designated fund, or
- Open a Portuguese bank account in their own name and wire the funds from that account.
Neither route requires the investor to grant any powers over their bank account to a third party. By contrast, the arrested lawyer allegedly obtained such powers, giving him control to move the clients’ money.
Prospects for recovery
Monteiro notes that victims’ ability to reclaim the lost funds depends on whether the lawyer holds assets that can be seized. Police believe the €1.2 million has already been spent, so civil recovery may be limited unless hidden assets or property acquired with the diverted money are uncovered.
Earlier incidents involving the Golden Visa program
- 2017 – Maria Antónia Cameira: Arrested for defrauding Chinese, South African, and Brazilian applicants of at least €6 million by promising property purchases that never materialised.
- December 2025 – Algarve hotel scheme: Authorities uncovered an alleged €37 million Ponzi structure linked to a hotel development in Lagos, marketed to Golden Visa investors.
These cases share a common element: investors handed over money—or control over money—to intermediaries rather than transacting directly through accounts they alone control. The legal framework of the Golden Visa program itself has not been identified as defective; the risk arises from delegating financial authority to third parties.
Practical advice for prospective Golden Visa applicants
- Do not grant powers of attorney over your bank accounts to lawyers or agents.
- Use the two standard channels (direct overseas transfer or personal Portuguese account) to fund the investment.
- Verify the credentials of any intermediary and confirm that they are not requesting unnecessary control over your finances.
By adhering to the official procedures, applicants can avoid the pitfalls that led to the recent fraud case and earlier scandals.
Source article: www.imidaily.com
