The former director of Maltese Cross Financial Services Ltd told the other two company directors about the financial mess the company was in after he returned to Malta from a cruise, a court heard this morning.

Police Sergeant Marseanne Mifsud said she was present when Jean Claude Bugeja was arrested in August, at the company's Birkirkara offices, and when he gave various statements to the police at the headquarters.

He told the police that the other two directors of Maltese Cross Financial Services Limited did not know about the losses that started in 2008. Mr Bugeja said he only told them what was going on when he returned from a cruise. The other two directors confirmed they were not involved, she said.

The sergeant was testifying, before Magistrate Antonio Micallef Trigona, in the compilation of evidence against Mr Bugeja, 42, from Għaxaq, who is pleading not guilty to misappropriation and defrauding two of his former colleagues and directors, Robert Cutajar and Stephen Spiteri, and about 220 clients out of some €4 million.

This morning, the magistrate found that there was sufficient evidence for Mr Bugeja to be indicted.

In a previous sitting, Police Inspector Ian Abdilla said that, in the statement Mr Bugeja recounted how a wrong decision in 2008 spiralled out of control and led to Maltese Cross Financial Services Ltd facing a shortfall of €6.2 million.

Mr Bugeja said he was so consumed by the mess he was in that he was unable to sleep or enjoy spending time with his family, who were oblivious to his worries.