Monthly payment on bank loan more than double woman's income

The mother of drug trafficker Mario Camilleri made a monthly payment of Lm300 on a bank loan, more than double her income of Lm130, a court heard yesterday.

Police Inspector Paul Vassallo said he became suspicious of the discrepancy when he was looking into Stella Camilleri's financial background.

"I became suspicious of the origin of the money in Stella Camilleri's bank accounts because she is a pensioner with an income of about Lm130 a month," Inspector Vassallo said.

"This jarred with the fact that she was paying off a Bank of Valletta loan in Lm300 monthly instalments."

The inspector testified before Magistrate Abigail Lofaro in the compilation of evidence against Mario Camilleri, 40, his mother Stella, 63, and his son Pierre, 21, on a money laundering charge.

Stella Camilleri is also charged with two counts of forgery while Pierre Camilleri is charged with one.

Inspector Vassallo yesterday told how police started investigating the case after they were alerted of Stella Camilleri's attempt to close a savings account with Lm60,002 on August 13.

He said he went to the Criminal Court for authorisation to investigate Stella Camilleri's financial background and obtained the information the next day.

The documents showed that Stella Camilleri had had seven accounts with BOV and four with HSBC but all the accounts had been closed except for four at BOV:

¤ a savings account of Lm177,

¤ a fixed account of Lm60,002,

¤ a loan account of Lm15,425, and

¤ a savings account of Lm370 in her son's name.

The accounts at HSBC were:-

¤ a fixed deposit account of Lm14,000 closed on January 21

¤ a loan account of Lm10,000 opened on November 29, 2001 against a fixed deposit account and paid off by January, 22, 2002

¤ a car loan account of Lm7,905 paid off by June 21, 2001, and

¤ a savings account closed on January 23.

Inspector Vassallo said he learnt that Stella Camilleri's income tax returns never exceeded the ceiling but when she was asked to identify the origin of her money, she said she had inherited it from her late husband.

She told police she had sold a garage for Lm20,000 and a Mercedes C Class for Lm28,000.

Inspector Vassallo said he had learnt that the Camilleris were being investigated by other colleagues of his, mainly following a recorded telephone conversation, one of many, in which Mario Camilleri and his son were heard discussing a deal of four.

The sale of a car and a garage were mentioned in other conversations, the inspector said, and he was later told that the money the Camilleris spoke about was linked to the purchase of drugs meant to be carried out earlier this year.

Brian Farrugia, from the licensing and testing department, said Mario Camilleri owned a green Rover 214 since 1996, Stella Camilleri owned a white Opel Astra since 1999 and Pierre Camilleri owned a blue Vauxhall Nova and a white Peugeot 306 since 2001. Stella and Mario Camilleri did not have a driving licence.

Martin Pace said he had sold a garage to Stella Camilleri about five years ago for Lm20,000 and bought it back for the same price last January.

Gaetano Fenech said he sold Stella Camilleri a Mercedes for Lm27,500. She paid Lm7,500 cash, part exchanged a car valued at Lm10,000 and the remaining Lm10,000 was to be paid in monthly bills of exchange, he explained.

But after the sale was completed he only received two or three monthly payments. He sent reminders for the payments until he was contacted by Pierre Camilleri who explained that they could no longer afford the car. Eventually Fenech bought the car back for Lm23,900.

Fenech said that although Stella Camilleri had paid for the Mercedes he always negotiated with her grandson.

Shown a signed sales document declaring that the Mercedes had been sold to him for Lm28,000, Fenech said the signature was not his.

Magistrate Lofaro noted that Fenech's testimony was not straightforward and pointed out that he was trembling. But when he was asked if he was scared of anyone, he said he was not.

Asked if someone had approached him about the case, Fenech said that an unidentified man had approached him about three weeks ago and asked him for a receipt for Lm10,000 on behalf of Pierre Camilleri.

But he refused to give it to him because he had already given a receipt to Pierre Camilleri. The man left without insisting, Fenech said.

At the end of yesterday's sitting, Dr Raphael Fenech Adami, for Stella Camilleri, made a request for bail but Magistrate Lofaro denied the request due to the serious nature of the crime, the risk she would abscond and the risk that she would tamper with evidence.

The case continues.

Inspectors Vassallo and Ian Abdilla are prosecuting with the assistance of counsel to the republic Dr Donatella Frendo Dimech.

Dr Fenech Adami is appearing for Stella Camilleri and Dr Franco Debono is appearing for Mario and Pierre Camilleri.