Yorgen Fenech flagged as 17 Black owner in 2018 intelligence, court hears

Intelligence received by police in 2018 had immediately flagged businessman Yorgen Fenech as the owner of 17 Black, a former police officer told a court on Friday.

Former Assistant Commissioner Ian Abdilla said that police officials involved in the investigations were aware of the intelligence and instructed to handle the matter with care.

However, one of those officials was Ray Aquilina, the former head of the police’s anti-money laundering unit. Police later discovered that Aquilina had a personal relationship with Fenech that was never declared.

“I did not know there was a conflict of interest involving Aquilina and Yorgen Fenech. He never declared one… I found out that they had a relationship from the media,” Abdilla said.

Abdilla took the stand on Friday in the compilation of evidence, in front of Magistrate Lara Lanfranco, against businessman Yorgen Fenech and former head of the police’s anti-money laundering unit Ray Aquilina, who are pleading not guity to money laundering and corruption.

Fenech is charged with complicity in the corruption of a public officer and money laundering.

Co-accused Aquilina is charged with corruption, leaking official secrets, money laundering and perjury.

They are pleading not guilty along with notary Mario Bugeja, who was charged with money laundering in the same case.

Abdilla said Fenech was also under investigation for the murder of Daphne Caruana Galizia. Police also investigated the case of  Melvin Theuma, the self-confessed middleman who helped facilitate the Daphne Caruana Galizia murder.

Abdilla said he was instructed by his superiors to ensure that Aquiilina was not involved in investigations against Theuma. This created an uncomfortable situation where an official beneath Aquilina was aware of investigations that he himself was not aware of.

When asked about the FIAU report with 17 Black intelligence that was passed on to the police, Abdilla said it was not strong enough by itself to take further action against those mentioned in the report.

The 17 Black investigation began following a report submitted to the Financial Intelligence Analysis Unit as part of a broader inquiry. This report was received in March 2018.

Aquilina was among those leading the investigations. The main person of interest was Fenech, although others were also involved. Fenech was already indicated as a suspect when the report was received.

The initial aim was to gather all relevant information through Europol and Interpol, but the two entities said they could not release information without letters rogatory. These are a formal request from a court in one country to a judicial authority in another country, asking for assistance in performing a specific judicial act.

An inquiry then started, which provided sufficient grounds to send letters rogatory to obtain information from foreign jurisdictions. Aquilina was one of the officials who drafted these letters rogatory—one was sent to Latvia and another to the UAE.

Inspector Brian Paul Camilleri also testified on Friday. He said he was involved in investigating Fenech regarding companies abroad and 17 Black. When Aquilina was a superintendent, he was responsible for this investigation under the supervision of former Assistant Commissioner Ian Abdilla. Camilleri was given a handover from Abdilla in April 2020.

He said Aquilina sent letters rogatory to gain information from overseas that expanded the investigations.

The investigation into 17 Black started in March 2018. The file was opened on the basis of intelligence that police had. The magisterial inquiry started in September that year. The inquiry led to criminal action being taken against a range of suspects.

Aquilina’s relationship with Yorgen Fenech

Times of Malta had exclusively revealed that Aquilina was poised to face criminal charges back in 2021. He was first arrested in April of that year as part of a wider probe into police and government officials who potentially leaked sensitive information to suspects in the Daphne Caruana Galizia murder investigation.

As part of the leaks probe, investigators had examined the planned sale of a Birżebbuġa apartment to Aquilina which Fenech was suspected of facilitating.

At that stage, Aquilina was meant to be investigating Fenech over his ownership of 17 Black, a secret company suspected to have been intended to funnel payments to former government officials Konrad Mizzi and Keith Schembri.

Instead of Aquilina appearing as the property buyer, the property transaction was to be fronted by his parents, who would then donate it to their son.

Documents reviewed by Times of Malta indicated that Aquilina had claimed he was not buying the property directly himself as he was undergoing separation proceedings with his wife, and therefore did not want the property to form part of their joint assets.

Aquilina had claimed during the sale process that the property acquisition was being funded through his personal savings.

Times of Malta previously reported how officers from the police’s anti-money laundering unit believed the Birżebbuġa apartment worth in excess of €180,000 was set to be sold to Aquilina’s parents for around a third of its market value.

Sources said the apartment was then to be donated to Aquilina by his parents in what police suspected may be a case of bribery and money laundering. It was not clear whether the property deal actually went through.

Soon after retiring from the police force, Aquilina was appointed as a manager within Enemalta’s internal audit and governance section. He no longer occupies the role.

Police Inspector Sean Friggieri prosecuted with lawyers Andrea Zammit and Sean Xerri de Caro from the Attorney General’s office.

Lawyer Charles Mercieca appeared for Fenech, Franco Debono and Andreana Zammit appeared for Bugeja and Lennox Vella appeared for Aquilina.