Former Marsaxlokk parish priest Luke Seguna told a bank that two cheques for €10,000, deposited in his personal account, were repayments for cash he had handed out to an elderly parishioner to distribute to entities in need.

HSBC bank officials had called the priest to ask about two APS cheques which had been deposited into his personal account, triggering further investigation into other transactions.

Details about that bank-client correspondence were later requested by police who then charged the priest with misappropriating €500,000 given to him by some 150 parishioners over a 10-year span.

Prosecutors claim those funds were intended for the Church.

Seguna denies all claims of misappropriation and money laundering, arguing the donations were given to him personally.

Many of his former parishioners have testified about their donations to him and the parish, insisting they did not consider themselves victims.

The prosecution questions how Seguna could deposit thousands of euros in various bank accounts and own a collection of five motorbikes and two cars on a clergyman’s salary.

The court has also heard about €148,000 that went to payment processing companies linked to three pornographic websites.

After a “verbal quiz” to confirm that the priest was the account holder, the bank asked Seguna about two APS cheques totaling €10,000, Timothy Zammit, head of financial crimes investigations at HSBC, testified on Friday.

He said Seguna explained he had given that amount in cash to one of his parishioners who would visit him in church asking for money.

The APS cheques were repayments for the cash amounts Seguna had given to the parishioner.

There was no corresponding withdrawal, since the €10,000 had been accumulated through monetary gifts.

Priest received cash gifts and kept money at home

Seguna said he received cash gifts on his priesthood anniversary, birthday and also when celebrating weddings and other occasions.

He preferred saving the cash at home since it was inconvenient for him to go to the bank’s Paola branch when the Marsaxlokk ATM was out of order.

The bank always encouraged customers not to accumulate funds at home, Zammit pointed out.

When checking other transactions concerning the priest, the bank had come across a number of online payments linked to a website, DDITServices.com, all for the same amount.  

An online search showed it could be a scam.

However, when Seguna was questioned by the bank, he said he knew about those credit card payments and confirmed he had effected the transactions when buying apps, posters and online videos.

Faced with that confirmation by the client, the bank did not undertake further verification.

The defence objected to questions asked by prosecutors about these transactions.

Lawyer Matthew Xuereb argued that in line with EU case law, such personal private data could only be disclosed if proportional and necessary. Anything short of that could result in a breach of the accused’s right to private and family life.

The prosecution’s line of questioning could impinge on the accused’s fundamental rights and besides, was not relevant to the charges at hand, added lawyer Jose’ Herrera.

The court, presided over by Magistrate Natasha Galea Sciberras, took note of those objections and authorised the prosecution to proceed with questions about information contained in the bank documents presented as evidence.

Bank closed Fr Luke's accounts

Following criminal charges and a freezing order issued against Seguna, the bank informed the client last October that his accounts were being closed and then sent him an exit letter.

A digital forensic analyst tasked with extracting data from three devices seized from the accused’s possession testified that one was password locked while the iPad appeared to have been “wiped out”.

Under questioning by defence lawyer Alex Scerri Herrera, the witness clarified that there had either been no data at all or any data had been wiped out. No assumptions were made one way or the other, added the witness.

Another witness on Friday was a Marsaxlokk parishioner who helped out at a charity cake sale and sold lottery tickets during a fundraising meal organised by volunteers.

Asked about her involvement, the woman replied, “Nothing! I never had anything to do with money.”

She told the court she had simply shared a post about the fundraising activity and sold tickets at the event, handing over the money to another parishioner who was the organiser.

The case continues in May.

AG lawyers Andrea Zammit and Ramon Bonnet Sladden prosecuted.

Lawyers Jose’ Herrera, Matthew Xuereb and Alex Scerri Herrera were defence counsel.

Lawyers Maurice Meli and Stefano Filletti are representing the Malta Archdiocese.