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Operation "Scorched Earth": Seven defendants under investigation for €3.6 million fraud with European funds in Madeira

Wednesday, 25 February 2026RSS

The Judicial Police have launched Operation 'Scorched Earth' to investigate a €3.6 million fraud involving European funds allocated for reforestation projects in Madeira. The operation has led to 26 searches in Madeira and Lisbon, identifying seven defendants, including five individuals and two companies. The investigation focuses on potential crimes such as qualified fraud, undue receipt of advantages, corruption, and money laundering, with two women arrested for significant losses linked to 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.

AI Summary AvailableSearches in Madeira probe €3.6m EU‑fund fraudRead the synthesized summary with context and explainers

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