Man turned to fraud to repay loans, court hears

A Mosta man charged with defrauding a woman of Lm22,000 had been the victim of usury since the 1980s, a court heard yesterday.

Police Inspector Paul Vassallo explained how the man, whose name cannot be published by court order, released a detailed statement in which he explained how he had devised a scheme through which he told people to invest money in an alcohol business.

The man told people that by investing in the scheme they would get their money back with interest but in reality the man used the money to pay the money lenders, the inspector said.

He was testifying before Magistrate Antonio Mizzi in the compilation of evidence against the 47-year-old Mosta man who is pleading not guilty to defrauding a woman, whose name cannot be published by court order, of Lm22,000 on and before November 17, 2001.

The inspector explained that he investigated the case together with Inspector Edel Mary Camilleri after receiving a suspicious transaction report from the bank.

During questioning the defendant told him that another man, (XY), whose name cannot be published, spoke to people about the alcohol scheme and how the money passed through the defendant's account.

In the statement the defendant admitted owing money and told the inspector that, one way or another, he wanted to pay back all the money he owed. The inspector explained that the defendant mentioned doing so by selling land he owned.

A businessman then took the witness stand and explained that he was the colleague of the woman who had been defrauded by the defendant.

The name of the businessman cannot be published by court order.

He explained that he was present when his colleague lent Lm33,000 to XY who eventually told them that the defendant owed him money and he could not pay back the Lm33,000 before the defendant paid him.

The businessman said that one day XY went to their office and gave them four BOV cheques amounting to a total of Lm22,000 signed by the defendant.

But when the businessman and his colleague tried to cash the cheques they were told that there was no money in the account.

When cross examined by Dr Tonio Azzopardi and Dr Tonio Ellul, the businessman said that three days after he tried to cash the cheques his lawyer, Dr Adrian Delia, told him about a letter that Dr Ellul had sent regarding not cashing the cheques.

During a meeting called to resolve the matter the defendant suggested paying his colleague after three years but no agreement was reached because the defendant was not in the position to provide a guarantee.

The businessman also said that he had always negotiated with XY and only met the defendant during the meeting.

The case continues.