Lawyers to allege entrapment in €20 million money laundering case

A magistrate hearing a €20 million money laundering case has been told that the Police and Customs had observed the persons under investigation illegally transferring large sums of cash for several years before moving against the alleged launderers.

Lawyers Arthur Azzopardi and Franco Debono told Magistrate Gabriella Vella this morning that they would be alleging entrapment by the authorities in the case against Hesham Zayed, Essam Mohamed Edernawi and their companies P.H.F. Ltd, U.G.T. Company Ltd, Express Route Company Ltd, HZ Medical Equipment and Health Services Company Ltd and H&H Investments Ltd.

The accused had been arrested in a police operation involving the Anti Money Laundering Squad, which had confiscated luxury cars and cash. Also charged in connection with the operation were Khaled Baely and Hdidan Tamer Ramadan Ali.

A customs officer took the witness stand on Wednesday morning, answering a series of questions put to him by the defence lawyers.

Debono asked the witness for the exact date that the investigation had started. The witness said he could not recall, and was pressed on this by the defence, which said it needed this information.

“When was customs told that it needed to act in this way with these people?” asked Debono.

It was the result of an agreement between the police and customs, said the witness. Debono pressed him on whether he could provide a date, but he could not. An objection by the prosecution which argued that the question could impinge on national security was overruled.

Debono repeated the question. “Meetings took place, but I don’t have the dates,” insisted the witness. “You must remember that ….the law giving us the power to seize the money was introduced last year.”

Debono asked whether customs would inform the police every time that money was passed. “Police and FIAU are informed of every transaction. In the past, we would pass it on every week, according to law. Now we have an electronic system where they are informed immediately.”

How long had this been going on for, asked the defence. “Was it days? Months? Years?”

“This has been going on for years,” the witness replied, refusing to give a definite figure.

Making submissions before the court ruled on whether it had seen enough prima facie evidence to send the case back to the AG for a bill of indictment to be issued, Azzopardi argued that, whilst there was a case against the individuals involved, there was no basis to charge the companies with money laundering.

“Till now, we still don’t know with regards the companies, what the predicate offence leading to the money laundering is,” the defence lawyers argued.

Lawyers Franco Debono, Arthur Azzopardi, Mario Buttigieg, Mario Mifsud and Christian Camilleri are appearing for the accused.