The Madeira District Court today began the trial of an alleged network accused of falsifying air travel documents to obtain Social Mobility Allowance reimbursements improperly through CTT.
The 16 defendants face charges including aggravated fraud, document falsification and computer-related forgery. Twelve appeared for the opening session, while one of those absent faces a fine after the court rejected the justification provided.
According to the Public Prosecutor’s Office, the alleged scheme was devised and led by travel agent R. Ferreira, owner of the now-defunct Madeira Flight Travels.
Presiding judge Alexandre Azadinho summarised the prosecution’s case, describing Ferreira as the alleged “first beneficiary of the schemes he devised.” The activities are alleged to have cost the State approximately €2.2 million.
The indictment claims that the agency sold tickets to customers for only the amount they were required to pay under the Social Mobility Allowance, at the time, €65 for students and €86 for other Madeira residents, without requiring them to pay the full cost of the journey.
The amounts and fares shown on the documents were then allegedly altered, allowing reimbursements to be collected from CTT using paperwork supplied by the agency.
As the number of customers increased, agency employees and other trusted associates allegedly began collecting reimbursements using clients’ documents, which had been authenticated by a lawyer who is also a defendant in the case.
The prosecution further alleges that claims were submitted for journeys that were never made and in the names of agency customers who had not travelled. Some defendants are also accused of using false documentation to obtain reimbursements in their own names for journeys they did not take.
The first defendant to give evidence, E. Vasconcelos, said he had worked for Ferreira without an employment contract. He admitted that the fares recorded on invoices did not correspond to the amounts actually paid for the journeys.
Vasconcelos claimed that he initially did not realise the practice was illegal and had simply followed his employer’s instructions. He said Ferreira received the money collected from CTT and paid him a commission, which he used to cover his bills.
Most of the remaining defendants indicated that they would reserve their statements until a later stage of the proceedings. The court was due to continue hearing defendants this afternoon.
The case continues….
Samantha Gannon
info at madeira-weekly.com
Vasconcelos claimed that he initially did not realise the practice was illegal and had simply followed his employer’s instructions. He said Ferreira received the money collected from CTT and paid him a commission, which he used to cover his bills.
Most of the remaining defendants indicated that they would reserve their statements until a later stage of the proceedings. The court was due to continue hearing defendants this afternoon.
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