Serafim Martins, arrested last May on suspicion of fraud and laundering the proceeds of sales at his textile shop chain, has been in custody ever since but at last has a chance to argue his case in court.
The investigation into millions of euros of profits that Martins failed to declare involved a extraordinarily complex network of fictitious businesses and overseas bank accounts which enable him to channel millions into offshore tax havens.
Four lawyers working for Martins had their premises searched.
The textile chain, Feira dos Tecidos, had outlets in Guimarães, Porto, Coimbra and Lisbon and his IVA and IRS payment evasion scheme isbeing laid bare in court as the Department of Investigation and Penal Action explains to judges how Martins manipulated his accounts between 2002 and 2007 and owes unpaid income tax of €6.1 million.
According to the prosecution, Serafim Martins filed no tax returns and used offshore companies to hide money. He denies the charges but his ex-wife and father-in-law says he is lying.
More than 20 companies were used in the tax evasion scheme in a network with links in England, Spain and Italy.
The head of Finanças in Oporto was caught in the net and Serafim Martins with his lawyer were found to control almost 100 bank accounts.
The trial was unexpectedly postponed as the defense requested the examination of a witness who inconveniently is in Cape Verde.
Comments
OK the Financas head in Porto is involved but he will claim early retirement and walk. No doubt the bank manager or clerk responsible in each instance is never bothered. And for a lawyer, helpfully pre-warned by their connections in the police force - a search of their offices will yield nothing.
15 years ago BES was being hauled over the coals in the US for not checking the identities of new account holders. No Portuguese banker learning anything from the experience or seeing it as wrong.