Fines and sentences issued by the Bank of Portugal have been confirmed in court, those that controlled Millennium BPC have to pay €3.47 million but inevitably will appeal.
The Tribunal de Pequena Instância in Lisbon has ruled and confirmed the convictions and fines for the six former directors of Millennium BCP. The bank itself had been fined for irregularities in the management of its offshore operations.
The court reduced the fine for the bank imposed by the Bank of Portugal from €5 million to €4 million but the amounts awarded against the managers and directors stay in force.
The verdict was announced by Judge António da Hora and condemns bank boss Filipe Pinhal, Christopher de Beck, António Rodrigues, António Castro Henriques, Alípio Dias, and Luís Gomes. Jardim Gonçalves already had appealed his earlier sentence which has not yet been heard.
Initially, António da Hora had decided to archive the case claiming that much of the evidence produced was gathered in violation of banking secrecy laws, so was inadmissible. The Public Ministry and the Bank of Portugal objected to this ruling and appealed. The decision of the lower court was overturned, paving the way for a retrial.
Interestingly, the same judge has been involved in the initial dismissal of the case and the subsequent retrial leading to this ruling.
This latest decision is likely also to be appealed as none of the directors feels that he has done anything wrong.
Banco Comercial Português (BCP) operating in the high street as Millennium BCP, was founded in 1985 by Jardim Gonçalves and some of his friends in the Oporto financial community.
In 2008 the bank reported a profit of €200 million but by 2012 the bank was in deep trouble and was rescued in a highly controversial €3 billion state bailout, the money was taken from Portugal’s bailout fund arranged by the Troika.
Even before this rescue, the bank courted controversy as in 2007 the Millennium BCP accounts were investigated by Portuguese financial crime investigators, Bank of Portugal officials, and the stock market authorities.
The preliminary findings of the stock market team alleged the existence of several off-shore companies which Millennium BCP 'may have used to buy its own shares' when it increased its capital in both 2000 and 2001.
One of the shareholders, José Berardo, provided investigators with documents pointing to several illegalities and the finger was pointed at previous board directors and managers.
