A Lisbon court has demanded the seizure of investments and property owned by João Rendeiro to the value of €4.7 million, after the former president of the Banco Privado Português (BPP), Paulo Guichard and Salvador Fezas Vital all failed to deposit a surety of nearly €7 million.
The money is to ensure the payment of compensation to investors who are claiming damages caused by the action of the three former bank executives who are being tried for various crimes, including fraud and falsification of documents.
According to the instruction made by the District Court in Lisbon, in addition to the legal seizure of João Rendeiro’s house Quinta Patino in Cascais, there are orders over some land and two Lisbon apartments. Valuable artworks appear already to have been farmed out to friends for 'safekeeping.'
Reindeiro and Vital’s bank accounts have been frozen and the balances will be frozen, as well as shares and money in investment funds, securities and deposits of up to €500,000.
The total monetary value in cash, real estate and securities is €4.7 million.
The decision by the court is preventive as there is danger of the men not coming up with the amounts required and aims to prevent the situation where creditors suddenly find there are no assets available to seize "when the final decision is announced, and if it is unfavorable to the three defendants,” which it is likely to be.
The Prosecutor accuses the bankers of fraud by hiding key information when Privado Financeiras subscribed to an increase in BPP’s capital which later left investors high and dry when the bank went under.
On January 28th this year, the Court of Appeal allowed an action by 21 private investors in Privado Financeiras, claiming a loss of about €41 million.
Rendeiro, Guichard and Vital were deemed ‘unreliable’ when the court ordered them to deposit a surety of €6,905,841 at Caixa Geral within 20 days of the January judgment.
Since none of the men deposited a cent, the seizure of goods has been ordered to ensure, should the men lose in court, that there is at least some money there to pay the creditors.
Since only Rendeiro has assets of any size and value, the seizure affects him more than his co-defendants.
One small point is that the assets held by Rendeiro, the former president and founder of BPP, already are seized as he owes money to the tax authorities, which in fact he has been paying off regularly over an agreed period.
Only after this is settled can the District Court in Lisbon get its hands on the balance of Rendeiro’s assets and sell them if necessary should he found guilty and a compensation order issued.
Irregular conduct has come to the Court’s notice, namely that Guichard intended to marry a Brazilian or Cape Verdean citizen and have a child so as to evade extradition to Portugal.
Then, it was discovered that Rendeiro has moved funds to banks accounts in Russia, Dubai and Singapore, that he has undeclared funds still in Portugal earned from overseas activities.
In November, 2008, Rendeiro, the largest shareholder of BPP, resigned as president and shortly after the bank went bust.
Rendeiro, Guichard and Fezas Vital, the top three BPP executives, and Fernando Lima and Paulo Lopes all were accused of falsification of documents and false information "in order to give the appearance of sound governance at BPP” so they could hold well paid management positions.
It all collapsed when even the Bank of Portugal as regulator became aware of their behaviour and realised the bank was insolvent.
Banco Privado Português - timeline:
Founded by João Rendeiro it is currently in liquidation.
On 24 July 2009, Paulo Guichard and Salvador Fezas Vital, two former board committee members of BPP were suspended by Banco de Portugal, and joined João Rendeiro in the BPP case, to be indicted for falsifying accounts, tax crimes and money laundering.
On 15 April 2010, the Banco de Portugal, Portugal central bank, "after verifying the impossibility of recapitalization and recovery efforts of this institution", ordered the liquidation of the Banco Privado Português.
On 11 October 2010, the Polícia Judiciária conducted searches at the homes of former officials of the BPP under the scope of an investigation into suspected money laundering and fraud.
On 11 February 2013, João Rendeiro, Fezas Vital and Paul Guichard, former members of the board committee were charged by the Public Ministry with fraud, in a matter of a Collective investment scheme that damaged hundreds of clients for an estimated €41 million
See also:
Prosecutor wants 5 years jail for BPP directors
