Chilean businessman fighting extradition claims home country won't give him fair trail

Chilean tech guru Alberto Chang Rajii has told a court that he would be “guilty until proven innocent” if sent to his home country of Chile.

Chang Rajii took the witness stand this afternoon in proceedings over his extradition to Chile where is wanted to face charges of fraud and money laundering.

He told the court that he had been interested in investing in the Manoel Island project. “I came to Malta with a legitimate business interest, aside from tax expediency,” he explained. He recounted how, in July 2015, he had approached Henley and Partners for advice on tax planning and that they had recommended Malta, where the firm was tasked with overseeing the Individual Investor Programme which would qualify him for Maltese citizenship. “I knew Brexit was coming, I knew that I would have an office in Malta, which is an EU country.”

“After looking at everything, I decided on coming here..it was a done deal by the end of August.” Whilst I was in Malta he said, he had met German senator Manfred Osterwald who was involved in a project for the development of Manoel Island and was offered a stake in the project. “The project fitted into the IIP framework,” he said.

Chang Rajii said that he had rented an apartment from a friend, agreeing to buy it if his application was accepted, but as Henley had “disengaged his application” he had signed a 6-year lease instead. “I've never owned that apartment.”

He had not been given a Maltese passport because the process had been halted in April, he said. “I was eligible for the passport, they carried out comprehensive due diligence. I have no criminal record...I was told I would be a poster boy for the scheme. People come here not just for tax efficacy but for investment purposes also.”

He argued that the Chilean authorities are attempting to stem the loss of tax revenue from Chile by targeting high net worth individuals who own assets overseas. “The prosecution in Chile, acting as the hand of the fiscal authorities, are entrapping people in order for them not to leave the country. I am somewhat well known in Chile. I invested in a lot of startups worldwide: Uber, Snapchat, Foursquare...The Chilean authorities made me the poster boy of what people shouldn't do.”

He said his 68-year-old mother had been asked to testify in proceedings against him in Chile. Chang had advised her not to come to Malta, because of the risk that she would be accused of absconding. However, her sister had invited her to Lima, Peru for a week because the media harassment was so harsh,” until the furore subsided. “She was arrested at the border and held for 4 months.”

He added that his mother needed a surgical procedure to correct a neuroma in her foot. “She was jailed for 4 months, after which she spent 5 months of house arrest. She was released yesterday. She is having her surgery, today, now.”

Asked why he didn't want to return to Chile, he replied that the moment his mother was arrested he knew it was not safe to return to Chile. “There would be two people in jail, not one. I didn't feel, because of the evident facts of the case, that I would have a fair trial in Chile.”

Magistrate Bugeja asked what was behind the so-called malicious prosectuion Chilean authorities.

“Without a doubt...not just my feeling...every person who has a private company that does any financial activity has been sent to jail without pressing formal charges or passing sentence. It has become a perverse way of presenting facts, which are not clear.

Defence lawyer Stefano Filletti clarified the question. “Why are you concluding that the Chilean authorities are conducting a malicious prosecution?”

“The fact that my mother was arrested without a warrant. Also, up till recently I have been denied a right to lawyer...my lawyers have been placed under duress to drop my case.” He exhibited contracts of previous lawyers who had renounce patronage after being warned that it “would be the last case of their career.”

The prosecution in Chile issued a freezing order, which led to him to be unable to pay investors and consequently charged him with fraud and money laundering, he said.

“They have frozen all my assets, leading to my default and demonised me. The first reason is money. If I move to Malta they would not receive all my taxes. The second is public opinion. I am the only person who has contested this unfair regime. The others are unable to do so because they are in jail.”

Chang Rajii added he expected his testimony before the court today would be reported in Chile and would be distorted.

He pointed out that it couldn't be a genuine case of fraud because despite seizing all his funds in the country, nothing had been distributed to any of the claimants.

“I have assets available in Chile and offshore, why on earth would I stop paying my creditors and bring hell on me?”

“There is no fraud. I have contracted business for 15 years and I don't owe a penny to any bank in the world, except a bank in the British Virgin Islands where I'm building a house.”