Major Investigation Unfolds: Judicial Police Target Historic Lisbon Institution in Insolvency Case

Judicial Police Conduct Major Raids

This morning, the Judicial Police (PJ) conducted multiple searches of companies, offices, and private residences as part of an investigation by the Department of Investigation and Penal Action (DIAP) in Lisbon regarding the insolvency of the Ateneu Comercial de Lisboa. They have already detained the insolvency administrator and named four others as suspects.

The investigation centers around suspicions of asset misappropriation linked to the institution. The Ateneu declared insolvency in 2012, after being leased for purposes related to the association it represents.

Operation “Quid Pro Quo” Reveals Corruption

In a statement released, the PJ confirmed that in the operation known as “Quid Pro Quo,” they are investigating a scheme that has defrauded a century-old cultural association in Lisbon out of millions of euros. This operation has led to the detention of the insolvency administrator and the establishment of four suspects due to strong suspicions of active and passive corruption, money laundering, and document forgery.

The detained individual, along with four others—two of whom are lawyers—developed a criminal plan allowing them to appropriate over 10 million euros in assets belonging to the cultural association. The modus operandi involved filing for insolvency due to debts of approximately 500,000 euros, followed by the approval of an insolvency plan that assumed the liquidation of this liability by an “investor.” This led to the acquisition of three properties owned by the cultural association, valued at 10 million euros.

Details of the Scheme

According to the investigation, later on, the “investor” sold these properties to a third-party company for 8.75 million euros to implement a real estate project. After this transaction, the “investor” shared over 2.8 million euros with his lawyer and the insolvency administrator through false loan agreements.

The PJ has seized four properties acquired with the illicit gains and bank balances totaling 1 million euros. Currently, three of the suspects hold managerial positions within the cultural association. During the police operation, four home searches and two searches at law offices were conducted in the Greater Lisbon area. The detained individual is expected to appear in court on Wednesday for the application of coercive measures.

In 2012, just a month after the two tenants signed the lease agreement, the Ateneu was declared insolvent due to a 400,000 euro deficit in the institution's accounts. The insolvency administrator was tasked with cleaning up the association's debts but allegedly attempted to sideline the tenants to serve his own interests.