[3] The key to Reis's plan was that only he knew that the contract was forged; trading on the period's widespread cynicism about the monetary policies of governments and on Portugal's reputation for corruption and self-dealing, he convinced the others who assisted in his operation that what they were doing had the clandestine support of the Bank.

Reis had been lucky or fortunate in his selection of associates; although currently legitimate, each man had checkered pasts and had no objections to engaging in an enterprise that was technically legal even if shady, especially if it involved such major insiders.

Reis alone knew unquestionably that there were no insiders and his various documents were worthless, though prosecutors and journalists later suggested that the continuing credulity of his associates as the scheme progressed strained belief.

On the pretext that the supposed loan and issuance would be politically unpopular, and with the implication that it was a bit of sharp practice by bank insiders, the entire operation was conducted in an atmosphere of deep secrecy.

It was vital, Reis emphasized to his contractors from Lisbon, that the matter be kept quite confidential to avoid embarrassing their prominent silent partners and risking the whole deal being scotched in the face of political opposition.

Marang explained that for political reasons the contract required utmost discretion and promised that Waterlow would shortly receive appropriate documentation from Lisbon.

The first delivery was made in February 1925, one year after the real 500 escudo banknotes with the image of Vasco da Gama began to circulate.

By illegally increasing the monetary base and investing heavily in currency, land, building, and businesses, he and Bandeira created a boom in the Portuguese economy.

Reis bought the Palace of the Golden Boy (Palácio do Menino de Ouro, nowadays the building of the British Council in Lisbon), three farms, a taxi fleet, and spent an enormous quantity of money on jewellery and expensive clothing for his wife.

José Bandeira bought retail shops and invested in all manner of enterprise; he also sought, unsuccessfully, to purchase the newspaper Diário de Notícias.

In the fall of 1925 Reis and Hennies made a tour of Angola, buying properties, investing in corporations, and making development plans.

[3] Although the issuing of unauthorised banknotes went undetected, the attempts by Reis and his partners to make good their fictitious obligations to Angola attracted attention for other reasons.

The acquisition of large tracts of plantation land by Angola and Metropole alarmed Alfredo de Silva, who controlled Portugal's market in vegetable oils.

Journalists asked how it was possible that Reis's bank, Banco de Angola e Metrópole, gave loans with low interest rates without the need of receiving deposits.

On 4 December 1925, a teller for a money-changer in Porto who had been following all the allegations and revelations in the press suddenly had a flash of insight and became convinced that the Angola & Metropole must be counterfeiting.

Although neither the teller nor the officials at the Porto branch of the Bank of Portugal could find any evidence that the bills from the Angola & Metropole were counterfeit, the circumstances were suspicious enough that the allegation was reported to Lisbon.

The day before, the Bank of Portugal had sent the inspector João Teixeira Direito, to Porto, to investigate the huge deposits by the Banco de Angola e Metrópole in banknotes of 500 escudos at the cambist firm Pinto da Cunha.

Reis and Hennies were on board the Adolph Woerman en route to Portugal from Angola and were tipped off that they were to be arrested when they made harbour.

In the following trial, Reis's forged documents, and widespread cynicism about the nation's elites, were convincing enough for judges to suspect that Bank of Portugal officials and others in the government and establishment might really be involved.

By the end of 1925, Reis had managed to introduce escudo banknotes worth £1,007,963 (at 1925 exchange rates: £72.6 million in modern pounds[4]) into the Portuguese economy.

After the scheme was found out, the Bank of Portugal ordered the withdrawal of all 500 escudo banknotes within 20 days; by 26 December 115,000 counterfeit notes were withdrawn.

In one of the most complex trials in English legal history, the case was finally settled in the House of Lords on 28 April 1932 in favour of the Banco de Portugal, which was awarded £610,392 in damages.

The fraud was the subject of the 1974 Italian TV miniseries Accadde a Lisbona ("It happened in Lisbon"); Reis was played by Paolo Stoppa.