A woman stands accused of swindling €290,000 by tricking 26 people to invest in a housing scheme that turned out to be a scam.

Sarah Ann Gatt, a 41-year old Santa Venera resident who works as a cleaner, pleaded not guilty to fraud, misappropriation, falsification of a public document as well as a private writing, making use of false documents and other fraud-related charges when she was arraigned on Tuesday. 

The woman was further charged with allegedly committing these offences while under a suspended sentence and also with relapsing. 

Gatt was denied bail. 

The case landed on the desk of prosecuting Inspector Shaun Friggieri at the Economic Crimes Unit around a month and a half ago, after one of the alleged victims turned up at the Housing Authority to ask about a pending application.

Authority officials soon smelt a rat and informed the customer that the application was probably a fraud. 

That query set the ball rolling and further investigations yielded some other five ‘applicants’ who had complained to the Authority about their applications to become homeowners. 

All these persons explained how they had been approached by two individuals who enticed them into buying housing at a reduced price.

For instance, a block of apartments was being offered for €200,000, explained the inspector.

The prospective buyers were assured that they could cancel the agreement at any time and claim their money back within a 30-day period.

Some of the alleged victims were attracted to the offer by relatives who had invested in the scheme, with cases dating back to 2018.

As the police probe continued, the number of suspected victims mushroomed from four to 26 for a total value of around around €290,000, with investigations still ongoing, the court was told.

Arrest warrants were then issued against Gatt and two others.

Her lawyers, Franco Debono and Marion Camilleri, requested bail during Tuesday’s arraignment. 

But the prosecution objected, in view of the twofold fear of tampering with evidence given the “plethora of civilian witnesses” still to testify and the fact that investigations were not yet wrapped up.  

There was a real risk of tampering with the administration of justice and third parties were still being investigated.

Moreover, the accused had an unruly character with past brushes with the law, also relating to fraud. 

“Therefore the prosecution’s fear is not an abstract one,” argued AG lawyer Andrea Zammit. 

Debono countered that the fear of tampering was questionable since the charges dated back to 2018.

That was more than enough time for the accused to tamper with evidence, argued the lawyer.

“Denying bail now would not be preventing anything that could not have happened earlier.”

However the prosecution rebutted that police only got to know of alleged fraud now and “as we speak police could find out more” went on Zammit. 

Moreover, since there had been no magisterial inquiry, tampering with evidence could take place.

After hearing submissions the court, presided over by magistrate Josette Demicoli, turned down the request primarily in view of the fear of tampering, whilst urging the police to summon civilian witnesses efficiently. 

The court also upheld a request for a freezing order over all assets of the accused. 

The defence registered objection to that order. 

Inspectors Shaun Friggieri and Ritianne Gauci prosecuted, assisted by AG lawyer Andrea Zammit.