Paolo Malo convicted of insolvency due to negligence. Prohibited from exercising administrative-justice functions

On October 6, 2021, after losing the empire he had founded to a fund, Paulo Mallo was declared personally bankrupt, at the request of the Caixa Geral de Depósitos (CGD), which had been trying for several years, unsuccessfully, to collect debts. More than eight million euros for the famous dentist.

At the time, the court noted that the businessman, whom they described as a millionaire dentist, “admitted that he had no assets or income and openly assumed his inability to repay the debt” to the State Bank, also noting that “from research conducted” by an agent Implemented on 23 March 2021, it follows that there are no assets subject to confiscation and that the last known and declared remuneration dates back to October 2019, in the amount of €29,042.11.”

But a week after declaring his insolvency, Paulo Malo admitted that, after all, he had maintained a financial life free of burdens: “I have a basic salary that allows me to live without problems,” he admitted in statements to Negócios.

As for assets, he said: “They are scanning what I have in my name, which I currently do not know how to identify but must be handed over to the insolvency administrator.”

Paolo Malo “possesses assets that he has hidden from the insolvency process”

Now, the insolvency administrator Paolo Mallo, who demanded the bankruptcy be classified as guilty, with a “serious error”, will later declare to the court that the fact that “the bankrupt constantly appears in various media to advertise his work, without hiding that he receives income and describes that he has an official service provision contract With the Prosperity Towers, whose income he seized as soon as he learned of it.”

In later clarifications, he explained that “the insolvent had seizable income since the beginning of 2022, but he did not deliver it until January 2023.”

However, after a request to this effect made by several creditors, including CGD, the Judicial Court of the District of Lisbon issued a decision to open an “insolvency rehabilitation incident” for Paulo Malo, having now declared him guilty, on charges of dissipation of assets, hidden income and breach. One of the duties of the bankrupt.

According to the court ruling of February 29, Paolo Malo's insolvency was established because it “artificially created or aggravated liabilities or losses, or reduced profits, which led, in particular, to the debtor entering into destructive transactions in his favor or not.” Of people particularly connected to them.”

This, as it was found that the insolvent sold to Desafio Majestoso, Lda the trademarks 'Malo Dental International' and 'Paulo Malo Dental', at a price of 1 Euro, the trademarks registered in his personal name, with the company “Desafio Majestoso, Lda.” He then transferred the above trademarks to Prosperity Towers Unipessoal, Lda., owned by a person he trusted, Sonia Meirelles, and whose director is his de facto partner, Nancy Carolyn DeWitt, a transfer intended to harm the financial interests of the creditors. He is considered the judge of the case.

Under the classification of criminal insolvency due to “the destruction, destruction, concealment or causing the disappearance, in whole or in a significant part, of the debtor’s assets,” the court held that “the same has also been satisfied,” insofar as “it has been proven,” in short, that “ The bankrupt has assets that he has hidden from the insolvency process, namely shares in dental clinics, inside and outside Portugal, owned by him and through people he trusts,” and “leads a new network of clinics in Portugal and abroad called Malo Dental that are the beneficiaries of its activity.”

A woman from Malo rents a family home for 3,500 euros a month in the Twin Towers

More: “The insolvent provided dental services and gave lectures/seminars in cooperation with foreign entities such as nobelbiocare; Rewards for the business activity performed, in the costs of Prosperity Tower and Modernitypower (external supplies and services), the income obtained by the insolvent party is camouflaged and the people affected by it are interfered with,” recounts the court.

Among the 59 pages of the sentence, to which Negócio had access, we also highlight this passage: Nancy Caroline DeWitt, living in de facto union with Paolo Mallo, rented on January 23, 2020, with a guarantee provided by the company Prosperity Towers, for rent Monthly 3,500 euros The house they lived in with their two children: an apartment of 273 square meters, with two parking spaces and a storeroom, located in the Twin Towers project in Lisbon.

The court described the insolvency of Paulo Sergio Malo de Carvalho as guilty, and ruled that he be prohibited from managing third-party assets, engaging in trade, and from holding any position as a body holder of a commercial body, civil society, association, or private institution. Economic activity is a public company or cooperative for a period of six years.”