banco de portugal plot (12. 055)

Presenting a letter of introduction, credentialed and endorsed by the Royal Joh. Enschedé of the Netherlands, chartered maker of banknotes and other security documents, on this day in 1924 Artur Virgílio Aves Reis instigated one of the biggest financial frauds in history when he entered the offices of Waterlow and Sons Ltd, another respected and venerable printer of stock certificates, currency and postage stamps, and claiming to be on a secret mission on behalf of the governors of his native Portugal’s central bank, sought to fill a commission of two-hundred thousand, five hundred escudo notes (the cifrão $, from the Arabic for zero is a double-bar dollar sign, is the currency symbol and is used as the thousands and decimal point separator) for circulation and fund an infrastructure project in colonial Angola. Conceived during a short prison stint for illegal arms trade where he encountered his future associates and amid an absolute printing frenzy in Germany to counter hyperinflation, Aves Reis correctly wagered he could pull off a grand counterfeiting scheme, approaching both printers to produce the high denomination notes with identical serial numbers, then hiring an army of drones (zangões) back in Porto to launder the illicit millions, eventually establishing his own bank to expedite the process and avoid suspicion. The massive infusion of forged money, after having purchased a controlling share of stock in the central bank and nearly taking it over, was uncovered exactly one year and one day later with grave repercussions for the country’s economy and the ensuing financial crisis promulgating a collapse of the fragile first republic for a series of dictatorships.