An entrepreneur is accusing the police of failing to protect the business community by not taking action against a company reported for “fraudulently” issuing a cheque.

Gerald Vella, the managing director of a freight company, filed a police report on November 23, complaining he had been paid by a €15,000 cheque drawn on an account with no funds in it. The cheque, he said, was issued by Stainless Steel Products Ltd, whose director is UK national Darren Cooper.

In a legal letter sent to the Police Commissioner and the economic crimes unit a week after the report was filed, Mr Vella informed the police that Mr Cooper would be travelling to Malta at the beginning of December.

He also urged the police to take action against Mr Cooper on his arrival.

However, Mr Vella told the Times of Malta his letter had not even been acknowledged, let alone answered.

He felt the business community should be made aware of such instances, when, for unknown reasons, cases of fraud were not being investigated and no action was taken to safeguard businesses.

Court documents show the company in question has had four garnishee orders issued against it by three companies over the past months for a total amount exceeding €320,000.

The company has been taken to court over a €142,000 unpaid debt owed to Multipackaging Ltd, one of the companies that asked the court to issue a garnishee order.

Credit information accessed by the Times of Malta shows Stainless Steel Products Ltd failed to honour two other cheques issued to unnamed companies or individuals in November and December, totalling €7,000.

When contacted, Mr Cooper insisted the cheques were issued in good faith by the general manager of the factory on the strength of information at the time. He said funds were due to the business that would have covered the amounts involved.

“Trading has been very challenging this year and, as a result, there is significant strain on cash flow,” he said.

According to the last accounts filed by the company last year, Stainless Steel Products Ltd made a profit of €311,000 and was deemed to be in a “satisfactory” financial position.

Mr Cooper said he had not been contacted by the Malta police about the matter.