Maltese Cross admitted a shortfall of about €6m in clients’ assets.

Two directors of a financial services company said they had reported a colleague to the police and the finance watchdog after he admitted that an undeclared €6 million of their clients’ money was lost.

Stephen Spiteri and Robert Cutajar of Maltese Cross Financial Services Limited yesterday filed a counter judicial protest replying to charges made by 14 investors who are demanding that €1.4 million of their money is returned.

Mr Spiteri and Mr Cutajar said they themselves were duped by Jean Claud Bugeja who had offered them a directorship and a five per cent share of the business. They said they accepted and became directors in January 2013 after, on the basis of books shown to them by Mr Bugeja, seeing that the company had a clean record and optimistic projections when, in fact, it had serious financial problems.

The negligent operations that led to a loss of €6 million, all undeclared and not listed on the company’s books, started in 2008. They insisted they had nothing to do with what was happening and they did not handle any of the investments related to the 14 investors.

Mr Cutajar and Mr Spiteri said that in the days prior to August 7, when the Malta Financial Services Authority suspended the company’s operations, Mr Bugeja, who was forced to resign by the MFSA, admitted to them that there was a shortfall of about €6 million in clients’ assets.

Referring to 14 investors’ demands to be given all documentation, the two directors said they no longer had any access to the company offices or to any documents because the police and the financial watchdog had confiscated everything.

Mr Spiteri and Mr Cutajar questioned how the investors expected to be paid their capital in full claiming that it was guaranteed.

They said investors should not hold them responsible for what happened to their investments because they had nothing to do with it.

Lawyer Stefano Filletti filed the counter-protest.