Three transactions totalling €148,538 by Fr Luke Seguna to a porn website were flagged by the priest's bank as a possible scam, a court heard on Monday.

The detail emerged when police officers involved in investigations against the former Marsaxlokk parish priest took the witness stand during ongoing proceedings in which Seguna is pleading not guilty to fraud, misappropriation and money laundering. 

The court heard how, on August 10, a team of investigators from the financial crimes and cybercrime units, together with scene-of-crime officers and representatives of the Asset Recovery Bureau converged at the Marsaxlokk parish residence.

Fr Seguna was handed a copy of the search-and-arrest warrant, was told of the criminal allegations in his regard and given a letter of rights, testified Inspector Lianne Bonello. She added that the priest had cooperated throughout.

Fr Seguna immediately provided his mobile password and removed the device’s security features.

Officers then searched the premises, seizing items of jewellery, branded clothing as well as documents which were all placed in evidence bags and handed over for further investigation. 

Some four hours later, the search at the priest’s residence moved on to the parish office, the suspect’s Land Rover as well as his garage at Paola.

In lawyer's presence, Fr Seguna opts for right to silence

When he was later questioned in the presence of his lawyer, the priest opted for his right to silence, refusing to answer most questions. 

Asked by the defence whether a magisterial inquiry had been opened into the case, Bonello said the investigations were all “police work”.

The police did not require an inquiry to press charges, replied the witness when questioned further on the issue and how police distinguished between one case and another. 

The inspector confirmed that Seguna had cooperated throughout the search, presenting in court receipts for items of jewellery, keys, clothes, log books and cheque books seized by police. 

Priest aware of payments linked to pornsite

During the same hearing, an officer from the Anti-Money Laundering Unit took the witness stand to clarify figures he had mentioned in his previous testimony. 

Between 2015 and 2022 the priest had received €487,511 and not €449,373 as declared previously, explained inspector Christopher Ellul.

As for the cheque amounts transferred from the parish account to his own personal account, the sum was not €24,000 but €15,821. 

Some €148,538 had been traced from the priest’s HSBC Master Card and Revolut accounts to three paying processing sites linked to porn site LiveJasmin.

The bank had apparently flagged those transactions to the priest, thinking that he may have been targeted in a scam.

But the account holder said he was aware of those payments. 

 €18,000 in cheques, discrepancy in signatures

Police suspicions were also directed at a number of cheques totalling some €18,000 from a third party to the priest, testified officer Ryan Agius from the FCID.

The officer, who worked on compiling the priest’s financial profile, pointed out that those cheques were deemed to be “of interest” since there appeared to be discrepancies in signatures and the donor had been suffering from dementia.

Police obtained confirmation of this from medical professionals. 

During questioning, Seguna said certain funds came from donations, especially sizeable amounts he received on his tenth ordination anniversary. He explained that he would ask donors to specify their intention, namely whether the donation was meant for himself personally or the parish.

The priest had exercised his right to silence over various matters, including the cheques received from the dementia patient, discrepancies in signatures and the amounts transferred from the parish account to his own account.

Fr Seguna said he needed to verify when asked about who had access to his credit cards and Revolut account.

As for the term “masses” linked to one account, the priest told police that the name was “purely casual” and had nothing to do with the church. 

He also explained that his predecessor had undertaken certain parish projects.

Asked about the drop in income accruing to the parish, the priest pointed out that COVID-19 had also affected church funds. 

Police pointed out that the pandemic came later. 

Under cross-examination, the priest’s defence pointed out that eventually, the dementia sufferer had bequeathed all his wealth to the church and charity. 

"Had the police checked when the donor was diagnosed with dementia? And had they checked with a psychiatrist or doctor to confirm," asked Xuereb, questioning how police had concluded that the transaction was fraudulent.

“Are you an accountant," asked the lawyer.

“No, but I did courses on the subject,” replied the witness.

The case continues.

AG lawyers Ramon Bonnet Sladden and Andrea Zammit prosecuted. Lawyers Matthew Xuereb and Alex Scerri Herrera were defence counsel. Lawyers Stefano Filletti and Kristina Sutton appeared parte civile on behalf of the Malta Archdiocese.