Court rejects alleged credit of 2.5 million euros from Manuel Serrão’s mother

The court considered that there is no evidence that Maria do Rosário Souto lent 5.89 million euros to Selectiva Moda.

The Porto Court of Appeal (TRP) rejected the appeal filed by Maria do Rosário Souto, mother of businessman Manuel Serrão, confirming the decision of the insolvency administrator of Selectiva Moda – Associação de Promoção de Salãos Internacionais de Moda, which did not recognize an alleged credit of around 2.5 million euros claimed in the entity’s insolvency process.

In a ruling dated January 16, the TRP considered that it had not been proven that Maria do Rosário Souto had granted loans to Selectiva Moda for a total value of 5.89 million euros, as alleged. According to the court, it was not demonstrated that the amounts transferred constituted effective loans to the insolvent party, under legal terms, or that the latter began to freely dispose of these amounts.

In the appeal presented, Manuel Serrão’s mother maintained that, between January 2022 and January 2024, she made several loans to the association, at its request, through bank transfers. Maria do Rosário Souto also claimed that Selectiva Moda had returned more than 3.4 million eurosremaining around 2.5 million in debt. However, according to , the court concluded that the elements contained in the file do not allow proving the existence of this credit.

The TRP’s decision follows the understanding of the insolvency administrator, António Pragal Colaço and is reinforced by information provided by the Central Department of Investigation and Criminal Action (DCIAP). According to the ruling, DCIAP informed the process that there are no signs of any credit held by Serrão’s mother on the insolvent association.

The ruling also frames this decision in the context of an ongoing criminal investigation, in which the DCIAP is investigating an alleged fraudulent scheme to obtain European funds from Selectiva Moda. According to the court, Manuel Serrão exercised effective control over his mother’s bank accounts, operating them as he saw fit and managing her financial assets.

According to the court decision, these accounts were used to make circulate European funds allegedly obtained illegally by the association, which raises suspicions regarding the nature of the transfers claimed to be loans.