Armando Pereira, co-founder and former COO of Altice, was arrested as part of an investigation into corruption, tax fraud, and money laundering. Pereira, who is Portugal’s richest man, was detained for questioning by police. The investigation led to raids on around 90 homes and premises, with approximately €20 million of property seized.

The investigation, carried out by the Central Department of Investigation and Penal Action (DCIAP), focused on procurement decisions made at Altice during Pereira’s tenure. The DCIAP alleges that these decisions were detrimental to the company and the competition. Furthermore, the investigators are examining individuals and entities outside of Altice to uncover evidence of tax fraud amounting to over €100 million, as well as money laundering facilitated by the company’s corporate structure.

Altice has stated that it is cooperating with the probe and providing all requested assistance. Reports indicate that the company’s Portuguese offices were among those searched during the raids.

In response to the situation, Alexandre Fonseca, the CEO and chairman of Altice’s Portuguese and US businesses, has temporarily suspended himself from all executive and non-executive duties in the company. This decision aims to protect the best interests of the Altice Group and its brands during the ongoing investigation.

Fonseca has also resigned from the board of Altice USA. Altice USA has launched its own independent investigation following the arrests and has placed its chief procurement officer, Yossi Benchetrit, on leave during the investigation.

Altice was founded in 2002 by Armando Pereira, Patrick Drahi, and Bruno Moineville.

Sources:
1. Total Telecom
2. Altice USA spokesperson

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