A defence lawyer demanded accountability on Monday after a court heard how two former directors of Zenith Finance, facing money laundering proceedings since their arraignment in March last year, were charged in their personal capacity in spite of the prosecution knowing “from day one” that they had made no personal illicit gains.
The information was given by an inspector from the Anti-Money Laundering Squad when the case against Matthew Pace and Lorraine Falzon resumed.
Facing questions by defence lawyer Edward Gatt, the officer testified that investigations showed that no personal gains from any underlying criminal activity had been acquired by either of the two co-accused.
“So let me make this clear. In their personal capacity there were no illicit gains or profits?”asked presiding Magistrate Donatella Frendo Dimech.
“Nothing,” replied Inspector Ian Camilleri. “There were no funds accrued to them in their personal capacity.”
That reply triggered a series of questions by the defence.
“Did you know about this from day one?” Gatt asked.
“Yes,” the inspector replied.
“So why did you insist on a freezing order against both accused in their personal capacity?” he went on, acknowledging the fact that charges would have been drafted following collaboration between the AG’s Office and the police.
“I traced money movements,” said the inspector, explaining that he had not personally handled the issue of the freezing order “as such.”
“So was that decision taken by someone else?” pressed on Gatt.
“Yes,” confirmed Inspector Camilleri.
When asked to name the person who had taken that decision, the witness said that a “nucleus of persons” had been involved in the investigation and consequent charges at the time, some of whom no longer worked at the AG’s Office.
“Let me make this very clear. It could be that someone must eventually shoulder personal responsibility. My clients have gone bankrupt,” stressed Gatt, questioning why the accused had been charged in their personal capacity if it was known from the start that they made no personal unlawful gains.
“At the time, that was the direction. To charge them personally.”
“Thanks for that reply and for your honesty. Now whoever took that decision will bear the consequences,” went on Gatt, as both accused broke down in tears.
While Pace wiped away tears with his hands and Falzon fished in her bag for a tissue, their lawyer sent out one last warning.
“I’ve always said from arraignment stage that in these cases the courts are not instruments of fear but rather they are the life jackets and safety valve of these people,” Gatt said.
“Today we know that these persons were charged ‘on a direction.’ I will make sure to seek out whoever gave that direction. I want to bring him to light and make him pay back,” Gatt declared.
“That direction appears to have been very strong,” he added, arguing that the AG seemed bent on “breaking” people simply because they were “friends of Keith Schembri, Robert or Alfio.”
The criminal action and ensuing freezing order which impacted all assets of the accused, had effectively destroyed “their business, their families and their lives,” he added.
The inspector’s testimony was requested in light of separate applications filed by both accused to obtain a variation of the freezing orders.
As the sitting drew to an end, the court informed the parties that a decision would be delivered without delay.
Magistrate Frendo Dimech also thanked the inspector for his “honesty and uprightness.”
The case continues in March.
AG lawyers Antoine Agius Bonnici and Sean Scerri de Caro assisted the prosecution.
Lawyers Edward Gatt and Vassallo were defence counsel.