By Jeannette Neumann And David Enrich 

A Swiss financial company embroiled in the Espírito Santo saga is in the process of largely shutting down, according to people familiar with the matter.

The Lausanne-based company, Eurofin Holding SA, is selling or spinning off businesses and winding down asset portfolios, these people said. It is possible that parts of the company will emerge in some form under a different name, one person said.

The news comes as Portuguese regulators publicly announced that they are investigating Eurofin for discreetly helping Banco Espírito Santo SA raise money as the lender headed toward collapse earlier this year.

A parliamentary committee in Lisbon has been questioning Portuguese regulators about the August bailout of Banco Espírito Santo, following allegations of fraud and accounting problems. The hearings are expected to last months, as lawmakers seek to unravel what triggered the disintegration of what was once Portugal's biggest lender by market value.

On Monday, Bank of Portugal Governor Carlos Costa told lawmakers that regulators had uncovered "evidence that suggests acts of deceit and ruinous management regarding the issuance and placement of Banco Espírito Santo debt in special-purpose vehicles based abroad through various movements made via a Swiss intermediary."

That intermediary is Eurofin, according to a person familiar with the matter.

In a front-page story in August, The Wall Street Journal reported that Eurofin appeared to have played a central role propping up the Espírito Santo conglomerate over the years. The Journal reported last month that regulators are looking at Eurofin having helped Banco Espírito Santo issue bonds at one price and then sell them to customers at a higher price.

Eurofin said at the time that it is wholly independent from Espírito Santo and that it didn't sell financial products to the bank's customers.

Eurofin, founded 15 years ago largely to handle Espírito Santo's financial transactions, was for years partly owned by Espírito Santo. It derived a substantial portion of its revenue from the Portuguese conglomerate and its top executives frequently traveled to Lisbon to meet with Espírito Santo leaders.

Eurofin, which shares its Lausanne headquarters building with a pole-dancing school, has encountered severe financial problems as the Espírito Santo empire disintegrated. The small company has dismissed dozens of employees. It recently has sold or spun off its private-equity and medical units, according to a person familiar with the matter. Other parts of the company are slowly being shut, this person said.

Eurofin Securities SA, a key business unit, filed for bankruptcy in September, according to a company filing.

On Tuesday, Carlos Tavares, head of Portugal's securities regulator, said the Espírito Santo bonds sold to customers were two to three times higher than the initial price.

"This price difference was kept by the counterparties that we have not fully identified," Mr. Tavares said. According to information obtained by the auditors, "the difference was used to repay debts of other Espírito Santo Group entities," he said.

The sale of those bonds happened mainly in the first half of this year, he added.

"We don't think Eurofin is a counterparty to Banco Espírito Santo," Mr. Tavares said. "We suspect that it is an entity related to Banco Espírito Santo, although not formally. We have that suspicion, but we don't have the full information on that matter."

Separately, Mr. Tavares said Portuguese regulators are investigating potential insider trading on July 31 and Aug. 1, days before Banco Espírito Santo was bailed out. Mr. Tavares said regulators are awaiting additional information from a "foreign entity" to further advance the investigation.

Mr. Costa, the Bank of Portugal governor, said Monday that binding offers for Novo Banco SA, the "good bank" carved out from the collapsed Banco Espírito Santo are due in the middle of the second quarter next year.

Bankers in Spain say one likely bidder is Banco Santander SA, the eurozone's largest lender by market value. Santander's chief executive said this month that the bank would look at buying opportunities in Portugal, where it already owns a lender.

Margot Patrick contributed to this article.

Write to Jeannette Neumann at jeannette.neumann@wsj.com and David Enrich at david.enrich@wsj.com

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