A businessman who successfully fought off extradition to Chile six years ago and is now facing fraud charges before the Maltese courts, was a “prohibited migrant” whose residence card was revoked “20 minutes” after it was issued in 2016.

Details about the alleged fraud as well as the entrepreneur’s current status in Malta emerged at the first hearing of the compilation of evidence against Alberto Samuel Chang Rajii, a 50-year-old Peruvian-born and Chilean national, who on Tuesday reiterated his not guilty plea when fresh accusations were added to his charge sheet.

In 2017, Chang Rajii had challenged an extradition request by Chilean authorities who wanted to prosecute him over a suspected $80 million fraudulent Ponzi scheme which left investors high and dry.

The extradition request was turned down by the court and that decision was confirmed on appeal in 2018.

Six years later, a transaction alert from a local hostel to the unsuspecting holder of a Master Card account, triggered a police report which led to Chang Rajii’s arrest.

'Very charming, very intelligent,' alleged victim about Chang Rajii

When the case kicked off on Tuesday, Rajii’s allegedly latest victim took the witness stand.

The man, a local businessman now a consultant for a leisure company, recalled how earlier in March he was in the final stages of a meeting when he received an alert from the St Julian’s boutique hostel about the €540 payment through his credit card.

Since he had “absolutely not” authorised that transaction, the cardholder waited until the meeting was over and then called the hostel to inquire further.

The receptionist refused to divulge information but called the manager who simply confirmed the transaction but declined further details, citing data protection restrictions.

She suggested that he should inform the police rather than turn up uselessly at the hostel.

Within minutes he turned up at the St Julian’s police station where he filed a report about the suspected fraud and then accompanied the officers to the hostel, waiting outside while they went inside to follow up the matter.

Later, he saw Chang Rajii being escorted out by the policemen.

The alleged victim immediately recognised the suspect as his former tenant.

Back in 2015, Chang Rajii had travelled to Malta to acquire a Maltese passport through the Citizenship By Investment Scheme.

He had been shown the property.

“He liked it, he wanted it,” said the witness who at the time had negotiated the six-year lease through Henley and Partners.

He last spoke to Chang Rajii in 2022.

When the Chilean multimillionaire first came to Malta, his Maltese landlord would occasionally hand over his own bank card to Chang Rajii to enable him to effect certain minor purchases, such as Netflix.

“I would give him my card, stay with him and take it back,” explained the witness.

“He was renting my house….he was very charming….very intelligent. He knows a lot, about a lot of things,” went on the alleged victim, describing his reaction when finding out that he had been swindled.

“I was disbelieving… to me it was a shock.”

When the transaction alert came through on March 13, he initially hesitated about reporting the matter to the police.

But when he checked his account, he discovered a series of transactions which started off with petty amounts, between €13 and €20, but which ballooned to €400 or €500 some six or seven months down the line.

Those “cleverly staggered amounts” when added up by the account holder totaled some €10,600.

With his mind made up, the alleged victim headed to the police.

That same day, he handed over his credit card to the investigators and the card was frozen.

Shown the document in court on Tuesday, the witness confirmed that it was the same card he had been using for years.

Cross examined by defence lawyer Ilona Schembri, the witness confirmed that he had never changed his credit card.

Towards the end of last year, he had received a similar alert from the bank but since at the time he was abroad, he had not followed it up.

When the next alert arrived from the boutique hostel, he acted upon it.

Questioned why he had not called the bank to immediately block his card, the witness said that he opted to inform the police, pointing out that it only took minutes to go from work to the police station and on to the hostel.

When the defence pointed out a two-hour lapse between the transaction and the report, during which further fraud might have been perpetrated, the witness remarked “could be”.

Asked why he did not take action when €400 and over transactions were registered in one day, the witness explained that his secretary would normally handle the paperwork.

He had previously authorised Chang Rajii to use his card for specific transactions.

“During 2023 and 2024 did you authorise anyone [to use the card],” asked AG lawyer Claire Sammut.

“Absolutely not,” came the firm reply.

Residence permit revoked in 2016

A representative from Identità testified that Chang Rajii had only filed one application for a temporary residence permit back in 2015 and his biometric details were taken that same day.

He was described as “self-sufficient” and the permit meant that he could not work in Malta.

The card was issued on April 21, 2016 but was revoked “20 minutes later” as per emails received by the agency.

Asked for further details about those emails and Chang Rajii’s current status, the witness said she “did not have that information”.

Inspector Karl Roberts from the Immigration Department confirmed that Chang Rajii had only submitted one application for residence and that was revoked.

That meant that in terms of immigration laws, he was “a prohibited migrant” who could be subject to a return order by the Principal Immigration Officer.

Virtual credit card on Rajii’s phone matched victim’s number

Two officers from the St Julian’s police station who accompanied the victim to the hostel also testified on Tuesday.

While the alleged victim waited outside, they had spoken to the hostel manager who confirmed that the payment had been effected some 45 minutes earlier by a client who had been staying at the hostel for a year or so.

The manager accompanied them to the suspect’s room and on the way they met Chang Rajii.

When they ordered him to show them his mobile phone, the man did so.

There they found his virtual credit card bearing the identical number as the alleged victim’s card but under a different name.

Prosecuting Inspector Daryl Farr also testified that when investigating this recent report, he came across two other reports on the police system relating to the same suspect.

One was filed in 2022 and another in 2023.

The alleged victim in the 2023 report was abroad but had confirmed his interest in the criminal case when speaking to the inspector via video call.

That was why additional charges were pressed against Chang Rajii on Tuesday.

The court, presided over by magistrate Gabriella Vella, decreed that there were sufficient reasons for the accused to face trial on indictment before the competent court.

The case continues.

AG lawyer Claire Sammut prosecuted together with inspectors Daryl Farr and Nico Zarb. Lawyer Ilona Schembri was legal aid counsel. Lawyer Stephen Tonna Lowell appeared parte civile.