250 Charged in Portugal's €9.7M Fake Diabetes Drug Fraud Scheme
A large-scale fraud investigation has uncovered a scheme involving fake diabetes diagnoses to obtain subsidised weight-loss drugs. Portuguese authorities have charged 250 individuals, including doctors, lawyers, and pharmacists, with defrauding the state through false prescriptions. The alleged ringleader, an endocrinologist, was first arrested in November 2025 after prescribing tens of thousands of antidiabetic medications to non-diabetic patients.
The scheme centred on Dr. Graça Vargas, who reportedly issued prescriptions for drugs like Ozempic, Victoza, and Trulicity to patients seeking weight loss. By falsely diagnosing them as diabetic, she secured state subsidies covering up to 95% of the medication costs. Her prescriptions to Portugal’s National Health Service (SNS) totalled over 65,000 packages for 1,914 patients, costing the system more than €9.7 million—9.4% of the SNS’s total pharmacy spending.
Investigators found that all those charged—including two doctors, a lawyer, and a private clinic—had received state aid exceeding €5,100 each. The accused are said to be patients of Dr. Vargas, with pharmacists and legal professionals also implicated in the fraud. Prosecutors have proposed that the defendants repay the subsidies to avoid trial, as the charges focus on defrauding public funds. The judicial police initially detained Dr. Vargas in November 2025 after uncovering evidence of thousands of improper prescriptions. The investigation later expanded, revealing a network of individuals exploiting SNS rules for financial gain.
The case highlights a significant misuse of public healthcare funds, with 250 people now facing aggravated fraud charges. If found guilty, the defendants may be required to repay the subsidies they fraudulently obtained. The outcome could also lead to stricter oversight of prescription practices within the SNS.
