Court deputy registrar jailed for usury

A former court deputy registrar has been jailed for 30 months for usury, with a magistrate condemning him for 'boundless greed'.

Robert Bugeja was accused of loan-sharking two men in and around 2018. He denied the charges.

Police inspector Oriana Spiteri testified that Bugeja was investigated following a report from one of the alleged victims. His  bank statement showed €733.33 in monthly deposits, in addition to other cash deposits. Bugeja had denied lending money to the victim. 

The accused’s mobile phone was seized and analysed by the Cybercrime unit, which found messages indicating Bugeja had also loaned €1,000 to a second man, who then paid back €1,200 in six months.

In his statement to the police, Bugeja claimed that he used to deposit his father’s pension and then withdraw it and give the money to his mother. It resulted, however, that his father passed away in 2015 and his mother had dementia.

A constable who carried out the financial analysis of Bugeja’s accounts found that the deposits exceeded the amount earned by a public officer, who was paid via bank transfers. The cash withdrawals exceeded his pay.

The first victim explained that he was introduced to Bugeja by Tonio McKay, who had told him that if he ever needed money he had a friend. The witness said he had initially requested €500 in May 2015, which McKay handed him, and he had to pay Bugeja €1,000 in July 2015.

Each time he requested money, he was asked to pay double a few months down the line. 

In September 2017, the victim requested €1,700. He was given €1,600 by Bugeja and ended up paying €3,000.

In January 2018, the victim requested €8,000 and had to pay €13,000 in May of the same year.

The victim testified that the accused had messaged him, telling him that if he ever needed a larger amount, he could ask for it. 

At one time Bugeja was reluctant to lend him €24,000 after his notary refused to draw up a contract which stated that the accused would collect €65,000. But Bugeja eventually lent him the amount. He started repaying €750 a month, and had to reach €65,000.

After three months, he stopped paying him and filed a police report. 

Threats and fear

The witness recalled a time when Bugeja and his relative turned up outside his parents’ house. Bugeja’s relative had also called him, demanding payment of €40,000 and threatening that they would "send Arabs to follow him”. 

The man quit work out of fear. Seven months later, after he found a new job, he got a call after the first day from Bugeja, who told him he knew where he was working and that he had people following him.

They eventually went to a lawyer and drew up a constitution of debt in which it was stated that Bugeja loaned the victim €24,400 of which €3,000 had been repaid.

The second alleged victim testified that it was the first victim who introduced him to Bugeja.

The accused's version

The accused also testified, saying that he lent money to McKay without any interest and that McKay had perjured himself.

Bugeja claimed that it was the alleged first victim had called him pleading:  “Rob, do me a favour because they are going to kill me”. He had gone to Caritas to help him as he had debts with three or four individuals and could not pay them using his own money because it was in fixed deposits in the bank. Instead, Bugeja said he had got a loan from HSBC to buy some furniture and loaned that money to the first victim.

Asked further questions on the source of funds, the accused claimed that his father had left €160,000 in cash in their house.

He confirmed under oath that he had no licence to loan money.

Caritas representatives testified that it was the first victim who sought their help once, but never called again. Bugeja was on his list of creditors.

The court in its considerations observed that Bugeja’s statement to the police was not presented in court. The second alleged victim’s declaration to the police was also not presented in court and he had never finished testifying since his testimony was suspended.

It also noted that the prosecution failed to charge Bugeja with breaching the Financial Institutions Act after he loaned money to third parties without the necessary licence.

Analysing the testimony of the accused, the court observed that Bugeja tried to imply that McKay and the first victim were seeking revenge against him, but from the evidence, his testimony had been contradicted.

It emerged that the first victim went to Caritas and not Bugeja, who claimed that he had gone to Caritas in a bid to help the man.

McKay had testified about driving Bugeja around to collect the money from the first victim while Bugeja himself admitted to having loaned the money to others.

The court also observed that Bugeja tried his best to hide the source of his funds, claiming that his late mother, who could no longer testify, had given him the money he had deposited. It also emerged that the sum of money was not listed in his tax filing.

It also highlighted that Bugeja made a false declaration to the bank when taking out a loan to buy furniture. Those funds were then loaned to the first victim.

The court concluded that Bugeja loaned money to the first victim and requested interest way above the 8% allowed at law. The rates varied from 40.13 per cent to 1,500%.

It also observed that after the first victim borrowed €24,000 from Bugeja, and stopped paying him after repaying €3,000, Bugeja followed the victim and threatened him, requesting €65,000.

In its considerations on punishment, the court took into consideration that usury created misery for the victims, who fall into the merciless trap laid by individuals like the accused who were wolves in sheep’s clothing ready to profit from hapless people.

“Society has no place for such individuals who hide how dangerous they really are, and whose actions are often the cause of the biggest tragedy for these victims, people who in the eye of the accused are prey ready to be hunted down,” Magistrate Donatella Frendo Dimech said.

The court noted that the accused was a former employee of the courts. He had undoubtedly seen individuals ending before the courts and was aware of the unfortunate and traumatic experience of victims of crime.

“His actions are a result of boundless greed,” the court said.

Despite no previous convictions, the court ruled that the accused did not deserve a suspended sentence given that this was not an isolated case and the interest rates were increased every time.

The court also said that it expected Bugeja to show some regret, but instead the accused insisted he had “pitied” his first victim. 

Bugeja was found guilty of usury with respect to the first victim and was jailed for 30 months and fined €20,000. He was ordered to repay €8,831.85 to the first victim representing the excessive amounts paid in interest.

The court also ordered the forfeiture of €19,800.30 representing the proceeds of crime.

A three-year restraining order was issued in favour of the first victim. Bugeja was also ordered to pay €1,012.20 in court expenses. The judgement was sent to the police commissioner to investigate the case under the Prevention of Money Laundering Act.

Magistrate Donatella Frendo Dimech presided. Police inspectors Oriana Spiteri and Claire Borg prosecuted.