A businessman was arrested this Tuesday as part of Operation Cinderella, bringing the total number of arrests in this inquiry to 11. The investigation focuses on an alleged criminal scheme used in insolvency proceedings that benefited insolvent parties at the expense of genuine creditors. The PJ stated that the 56-year-old foreign national is suspected of participating in the scheme by illegitimately dissipating the assets of companies undergoing insolvency. He faces charges of criminal association, corruption, qualified fraud, fraudulent insolvency, document forgery, and money laundering, allegedly committed between 2023 and 2025. The suspect will appear before the Porto Criminal Investigation Court for questioning and the application of coercive measures.
PJ arrests another businessman in Operation Cinderella, investigating a scheme involving insolvency proceedings
Tuesday, 14 April 2026RSS
Context & Explainers
Insolvency is a legal finding that a company cannot pay its debts when due, which opens a court‑supervised insolvency proceeding (processo de insolvência) to restructure the business or liquidate assets. The court appoints an administrator, creditors file claims and certain claims (like unpaid wages) often get priority; for employees this can mean job loss but also possible access to outstanding wage protection schemes, while creditors may recover only part of what they are owed.
