Chinese businessman laundered 200 million euros through 400 shell company accounts

The network used front men as managing partners of fictitious companies. After several transfers across different countries, the money was sent to China.

An international money laundering network, with its epicenter in the commercial area of ​​Varziela, in Vila do Conde, which is often nicknamed the “Chinatown” of the North, will have embezzled more than 200 million euros of illicit tax origin in the last two years.

The operation, led by the Judiciary Police (PJ) of Porto, culminated yesterday with the arrest of seven suspects and the seizure of 300 thousand euros in cash, nine luxury vehicles and six properties.

At the center of the scheme was a Chinese businessman based in the North region, owner of a wholesale warehouse and a restaurant in Porto.

According to the report, the suspect used shell companies and front men to move gigantic sums, removing them from the legal economic circuit. The organization also laundered money for other businessmen of Chinese origin.

From 2023 onwards, the alleged leader intensified the recruitment of people in situations of economic vulnerability, to whom he attributed the role of fictitious managing partners of dozens of companies.

The process was simple: the so-called “straw men” were taken to notary offices and citizen stores to set up companies and then to banks, where accounts were opened and cards and access codes were issued.

Afterwards, the group had full control of these accounts, while the front men received small amounts or benefitssuch as stays in luxury hotels, for the collaboration.

The network’s teams daily collected envelopes with notes delivered by business clients and distributed the money across more than 400 bank accounts.

In just one of them, belonging to a woman from Bairro de Ramalde with no employment history or declared income, 1.4 million euros were deposited in cash.

After numerous transfer operations, passing through countries such as Germany and Denmark, the amounts were sent to China.

The seven detainees were present at the Criminal Investigation Court to learn about the coercive measures, involving suspicions of criminal association, tax fraud, money laundering and forgery of documents.