Portugal uncovers massive fraud as 250 fake diabetes diagnoses drain millions

A major fraud investigation in Portugal has uncovered a scheme where nearly 250 people faked diabetes to obtain subsidised weight-loss drugs. Authorities allege the group defrauded the state of millions by exploiting a system meant to help diabetic patients afford essential medication. The operation, codenamed Obelix, revealed that two doctors, a lawyer, and a private clinic were involved in the scam. One of the arrested physicians, Dr. Graça Vargas, reportedly prescribed thousands of antidiabetic medications—including Ozempic, Victoza, and Trulicity—to patients without diabetes. These prescriptions, submitted to Portugal’s National Health Service (SNS), totalled over 65,000 packages for 1,914 individuals, costing the system more than €9.7 million.

The fraud relied on falsified diagnoses to access state subsidies, which can cover up to 95% of the drugs’ cost for genuine diabetics. Investigators claim each suspect received over €5,100 in aid they were not entitled to. The scheme accounted for 9.4% of the SNS’s total pharmacy spending, significantly straining public funds. All 250 defendants now face charges of defrauding the state. If convicted, they may be ordered to repay the subsidies they wrongfully obtained.

The case highlights the scale of abuse within Portugal’s healthcare subsidy system. With the investigation complete, legal proceedings will determine whether those involved must repay the misused funds. The outcome could also lead to stricter controls on prescription approvals for subsidised medications.