Man speaks of 'investment' that went wrong

A magistrate yesterday continued hearing evidence in the compilation of evidence against a lawyer charged with misappropriation and fraud.

Magistrate Saviour Demicoli heard Josie Theuma give a detailed account of that happened between 2000 - when he invested Lm41,000 through lawyer Patrick Spiteri - and 2003 when Theuma took his case to court because he was still owed Lm25,705 of the invested money.

Theuma was testifying in the compilation of evidence against Spiteri, 39, of Wardija, who is pleading not guilty to defrauding Theuma and his friend Mario Abela of a total of Lm102,000 and misappropriating the money.

Theuma explained how in 2000 Spiteri, whom he had known for some four years, called him and told him about an attractive business investment with Lehman Brothers that would yield an interest of 18 per cent.

With Spiteri's consent, Theuma involved his friend Abela. Theuma invested Lm41,000 and Abela Lm61,000. The two men wanted to invest most of the money in Maltacom GDRs (Global Depositary Receipts) but Spiteri advised them to first invest in Lehman and then in Maltacom at a later stage. They took his advice, Theuma said.

Three months later Spiteri informed Theuma that the Lehman investment had yielded a better interest rate than expected. The original Lm102,000 had become £193,000 and he (Theuma) calculated the interest to be at 26 per cent.

During a meeting at Spiteri's Ta' Xbiex office, for which both Abela and Theuma were present, it was decided that Abela would take £5,000 and Theuma £12,500 and they would invest the rest of the money in Maltacom.

Theuma explained how he and Abela expected to be given certificates of their investment and the £17,500 but later Spiteri told them he put the £17,500 into an interest-bearing account and it had grown to £18,650.

Theuma said that he and Abela then started receiving the money in the form of various cheques.

He explained that after regularly insisting that he wanted his money back, or at least certificates that showed he had invested the money, in November 2003 Theuma voiced his intention to go to the courts.

He said that on hearing this, Spiteri told him that if he took the matter to court "You won't get a pound and I'll throw you in prison".

Theuma added that the money was his and his family's and he trusted in the courts and so eventually he referred the matter to the courts.

He explained that out of the Lm41,000 he invested he was repaid Lm15,295 while Abela was given Lm14, 605 out of the Lm61,000 he had put in.

The case continues.