Seven defendants in investigation of fraud in obtaining funds in Madeira with damages exceeding 3.6 million euros

The Judicial Police (PJ) announced on Wednesday, February 25, that it has launched an operation against fraud in the allocation of European funds intended for reforestation projects in Madeira, with estimated damages of over 3.6 million euros. As part of this operation, seven defendants have been identified, including five individuals and two legal entities. In the operation named Terra Queimada, 26 search and seizure warrants were executed by 58 inspectors and 15 forensic specialists, with the participation of two delegated European prosecutors. The PJ stated that 'management and capital control relationships were detected between beneficiary entities and suppliers within projects co-financed by the Portugal 2020 programme, which could indicate conflicts of interest.' According to the police, 'the participants are part of beneficiary entities of operations related to the European Agricultural Fund for Rural Development (FEADER), through which a payment of 3,829,345.27 euros was requested and incentives amounting to at least 3,675,231.87 euros were approved and paid.' The PJ indicated that the facts under investigation could involve qualified fraud in obtaining subsidies, economic participation in business, undue advantage, corruption, and money laundering. Two women have been arrested for allegedly causing losses exceeding two million euros through false investments in crypto-assets.

Context & Explainers

The Judicial Police (Polícia Judiciária) is Portugal’s national criminal investigation force that handles serious crimes such as homicide, organised crime, corruption and major fraud. It conducts criminal inquiries alongside prosecutors, so if you are involved in or affected by a serious criminal case in Portugal the PJ leads investigative work and consular assistance may be helpful.

The European Public Prosecutor's Office (EPPO) is an EU-level body set up to investigate and prosecute crimes that affect the EU budget, such as subsidy fraud, corruption and money laundering; it became operational on 1 June 2021. Its involvement in a case means investigations can be coordinated across participating EU countries, which matters when judicial police searches target suspected misuse of EU funds.