A well-known businessman is claiming “illegal and abusive” behaviour after the estimated value of a set of life insurance policies he bought two decades ago dropped by almost €1.5 million.

Emanuel Peresso and his wife, Carmen, filed a judicial protest against Bank of Valletta and Middle Sea Valletta over the sale of life insurance policies purchased between 1995 and 1997.

They explained that the projected values of the policies were expected to be far below the quotations that they had been given and, when taking all the policies combined, the value was equivalent to a reduction of 64 per cent.

The judicial protest was also filed on behalf of their children, Victoria, Noella, Maria Christina and Michael.

They said that although they were told at pre-sale stage that the estimated maturity value would reach almost €2.3 million, the present value was only €834,000 – a discrepancy of almost €1.5 million.

“The variations between the quotation provided at pre-sale stage and the actual projected maturity values can in no way be considered as a small percentage variation within the limits of acceptable reasonableness, especially considering that any such quotations ought to be provided in terms of law in a manner which is fair, clear and not misleading,” the protest reads.

The Peressos said that while the quotations were based on a return of 6.75 per cent per annum, the rate was “unilaterally” revised downwards and now stood at 2.25 per cent.

They said that the life policies were sold as a form of private retirement pension, but it resulted that BOV and MSV “abused of the trust” and had sold 11 life policies through the provision of “deceptive information, misrepresentation and unfair commercial practices”.

The Peressos said they had suffered damages as a result of the “unlawful and prejudicial conduct” of BOV and MSV.

They therefore called on the companies to pay them damages and warned of further legal action in default.

Lawyer Ian Refalo signed the protest.