The Bank of Portugal is to impose fines amounting to €11 million in 11 bosses of Banco Privado Português (BPP) including the founder, João Rendeiro.
The defendants now have a period of 15 days to challenge the court decision after which we will know the names of those convicted and the sums each has to pay.
‘The Bank of Portugal has completed the sanctions and condemn those responsible for acts committed at BPP,’ according to a statement issued by the central bank, run by Carlos Costa.
The 11 found guilty were responsible variously for violations of the General Regime of Credit Institutions and Financial Companies, according to a statement from the Bank of Portugal. Money laundering and fraud can safely be added at this point.
Those charged were João Rendeiro (founder and former chairman), Paulo Guichard, Salvador Fezas Vital, Vítor Castanheira and Fernando Lima, all managers, and former directors Paulo Lopes, Tiago Ferreira, Rui Domingos and Nuno Paramés.
Although the Bank of Portugal did not mention names or specific details it is known that the accusations included the falsification of accounts, providing false information to the market regulator, and non-compliance with accounting rules that may result in serious injury to the financial stability of the bank.
The seriousness of the charges could get João Rendeiro a fine of up to €2 million and it is certain that many of the accused will be banned from working in the banking sector.
In most cases the offences were high on the scale of seriousness which means fines up to €1 million per offence for individuals.
The Bank of Portugal is the first body to complete investigations and find someone guilty in the long running BPP affair. Criminal charges are expected to follow and the fines imposed by the central bank is a strong indication that these men will not escape justice for the fraudulent behaviour.
Timeline:
In April 2010, the Bank of Portugal "after verifying the impossibility of recapitalisation and recovery efforts of this institution", ordered the liquidation of the Banco Privado Português.
In October 2010, the Policia Judiciaria conducted searches at the homes of former officials of the BPP in an investigation into suspected money laundering and fraud
In February 2013, João Rendeiro, Fezas Vital and Paulo Guichard, former board members were charged with fraud over an investment scheme that damaged hundreds of clients the tune of €41 million.
