The police are investigating an “advertising scam” involving a UK marketing company in which Maltese tourism operators were defrauded of about €35,000.

A company spokesman blamed its Maltese sales agent, accusing him of failing to follow the instructions clearly issued before the marketing firm stopped trading.

The case involves 21 private entities that last year supposedly booked advertising space in the summer edition of the highly-popular tourist brochure Malta Sightseeing. The publication is produced by Supreme Travel Limited of Żejtun and is distributed free in hotels and tourist resorts.

These businesses were ap-proached by a representative of the Scottish-based marketing company Vogrie International, who offered advertising slots and said he was acting for Supreme Travel.

It transpired late last month that no bookings were actually made, though the advertisers had already effected payments between €600 and €3,000.

Contacted by Times of Malta, the police confirmed that the economic crimes unit was investigating a number of reports. The affected businesses include car hire companies, private museums, heritage centres, restaurants, diving schools and tour organisers in Malta and Gozo.

A number of them who spoke with this newspaper but preferred to remain anonymous said that until recently they trusted the Scottish company as they thought it enjoyed a good reputation.

They pointed out that Supreme Travel had previously commissioned Vogrie International to take care of the advertising for the 2014 summer edition and the UK company had honoured all of its commitments.

Consequently, when they were ap-proached the following year by its representative they did not hesitate to take up the offer.

However, a Supreme Travel representative told this newspaper late last year the alarm bells started ringing forcing them to sever ties with the Scottish company.

“Vogrie International was failing to keep some of its commitments such as the delivery of a set amount of free copies, which we had agreed upon,” Amanda Abela from Supreme Travel said.

On their part, the affected businesses said they were completely oblivious to this when Jean le Saint, from Vogrie International last December approached them with the offer.

They only realised this was an “advertising scam” when, late last month, they received an e-mail from Mr Le Saint informing them the company had ceased operations in Malta and, therefore, their adverts were not included in the forthcoming brochure. They were also instructed by Mr Le Saint to contact Vogrie International company secretary John Riederer, who later confirmed that the company had been declared insolvent in March.

Mr Riederer made a series of accusations against Mr Le Saint, saying he had withheld the payments in breach of insolvency laws.

We have been hampered by lack of cooperation. He has been sending oute-mails and texts with incorrect and misleading information

As for the refunds, Mr Riederer absolved himself from any responsibility, saying the issue was in the hands of an insol-vency practitioner.

Meanwhile, Supreme Travel advised the affected companies to file a police report on alleged fraud.

Only a few days ago, Mr Le Saint furnished the creditors with the details of the person in charge of the company’s creditors but the e-mail provided was incorrect.

When contacted, Mr Riederer confirmed that Vogrie International ceased trading at the end of March. “I am unable to clarify the specifics of any individual advertising agreements such as Supreme Travel, to which you refer, without being able to check the paperwork and we have not succeeded as yet in recovering any of the paperwork from our Maltese sales agent, John Le Saint, nor any other assets from Malta.

“He failed to follow the instructions clearly issued before we stopped trading, and we understand he has set up another company in Malta in association with one of the printers that we used to use on the island. Evidence is emerging to suggest he continued trading as Vogrie after we ceased trading and that he has suggested to some people he has ownership of said agreements.

“The company advised Mr Le Saint in March of the situation, but it appears he has failed to advise clients as he ought to have done and, sadly, he is seemingly more concerned about protecting his own interests,” Mr Riederer said. Noting he was not in a position to speculate on the outcome of matters, he was advised that it is normal in such situations that the insolvency practitioner promotes the sale of the company’s assets, including advertising agreements, to a third party to take them over.

Mr Riederer noted that the speculation of refund emerged from e-mails circulated by Mr Le Saint, some of which had been forwarded to Vogrie by clients.

He reiterated that Mr Le Saint did not represent the company and the comments did not represent the true position.

“All the action that we have taken has been under the guidance and direction of the authorities here in UK.

“These processes take time. We have been hampered by lack of cooperation from Mr Le Saint, who has been sending out e-mails and texts with incorrect and misleading information to various parties in Malta and in other countries.

“Clearly, we are sensitive to the concerns that you make reference to and will continue to cooperate fully with all parties now in control of matters to seek the best possible solution for all concerned in what are hugely challenging circumstances,” Mr Riederer said.

Questions to Mr Le Saint had not been answered at the time of writing.

keith.micallef@timesofmalta.com