Former band club officials imprisoned over Maltapost fraud

Three former band club officials, including a lawyer, have been collectively sentenced to nine years imprisonment after being found guilty of fraud.

The accused are Josef Grech, 39, from Marsa, Omar Caruana, 42, from Tarxien and Vincent Farrugia, 74, from Marsaskala.

The three held administrative roles in Paola’s Lourdes Philharmonic Society, which has since closed down. Farrugia held the position of president, Grech that of secretary and Caruana was treasurer.

The accusations against three were filed on 20 January 2009, after having committed fraud against Maltapost, with sums reaching €25,000. 

Evidence brought against them in front of Magistrate Marse-Ann Farrugia showed how the three were joint signatories for a bank account the band club had with APS Bank.

Grech and Caruana were also joint signatories for a bank account in the name of the Santu Wistin band club. 

Starting on November 2008 and running through to December 2008, they had issued cheques in favour of Maltapost in order to buy money orders from the company, then proceeded to deposit these money orders to the same bank account they had with APS and later issued cheques to third parties.

Such manoeuvres are called kite-flying because the persons in question had declared a fictitious credit balance. 

Between 3 January 2009 and 14 January 2009, 64 money orders were bought, amounting to €36,000, with 15 APS cheques being issued, 13 of which were issued from the Lourdes band club account, and the remaining two from the Santu Wistin band club account. 

From the money orders, only €25,000 were cashed, and due to the fact that the APS cheques were not being cashed as no funds were available, Maltapost issued a stop payment. 

APS had reported Maltapost’s actions to the police, who in turn launched an investigation into the case and took the three men to court. 

Grech was sentenced to four years’ imprisonment, Caruana for three years and Farrugia for two years.

Magistrate Farrugia also ordered that the three pay Maltapost €19,971 in damages.