LISBON—
Ricardo Salgado,
who until recently was chief executive of troubled Portuguese lender
Banco Espírito Santo SA,
BES.LB +4.81%
has been detained for questioning as part of a three-year money-laundering and tax evasion investigation.
The
investigation, called '
Monte Branco,
' was launched by the country's prosecutor's office in 2011 and
looked into the financial network between Swiss wealth managers and
Portuguese customers.
"The prosecutor's
office has been conducting various investigations under 'Monte Branco,'
which resulted in the detention of Ricardo Salgado Thursday," the
office said.
Mr. Salgado left Banco
Espírito Santo earlier this month amid troubles at its holding company,
Luxembourg-based Espírito Santo International SA, which was found to be in serious financial condition after an audit ordered by the country's central bank in May. The audit also found irregularities
at its accounts. Espírito Santo International filed for creditor
protection last week. Its main unit, Rioforte Investments SA, filed for
protection this week.
Mr. Salgado, a
member of the family Espírito Santo that controlled Espírito Santo
International, sat on the board of directors of the Luxembourg company
until March.
The prosecutor's office
disclosed Friday that it has opened investigations around Espírito Santo
International and its entities. A spokeswoman for the prosecutor's
office told The Wall Street Journal then that it has been following the
case closely and couldn't comment further under terms of the law.
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