Siblings accused of defrauding €400,000 in grants and tax refunds

Three siblings were accused of orchestrating a large-scale fraud that involved falsely claiming over €400,000 through various government grants and tax refunds. 

Mark Mallia, Karl Mallia, and Annemarie Mallia were charged with money laundering, while the two brothers faced additional charges, including breaching probation orders and illegal access to a third party’s email account.

The alleged fraud came to light after a complaint was filed with the Malta Tax and Customs Administration (MTCA). A person received documents regarding a grant for ordination to the priesthood—despite never being a priest. 

This prompted an investigation, which revealed that over 300 applications had been fraudulently submitted under various grant schemes. These included grants for weddings, funerals, bicycles, water purifiers, musical instruments, and even allowances meant for individuals with disabilities.

The fraud exploited a flaw in the MTCA’s online system that allowed users—once logged in with an ID number—to apply for grants on behalf of others. Investigators discovered that the suspects used personal data obtained from publicly available court judgments and university dissertations to fill out these applications.

Electronic evidence, including mobile phones and a laptop seized during the arrest of the two brothers and their mother in February, showed further planning. Notes were found detailing how to mask their identity using VPNs and instructions on sourcing ID numbers. 

The prosecution noted that according to investigations, Annemarie was much less involved in the alleged crimes than her brothers, and so she was granted bail with a €5,000 personal guarantee. 

The prosecution confirmed that most evidence and witness testimony directly implicates the two men, with Annemarie’s involvement appearing more limited. A freezing order was issued over the suspects’ assets, and the prosecution has 90 days to determine the amount involved.

The case is being heard by Magistrate Ann Marie Thake. 

The prosecution is led by AG lawyers Claire Sammut and Yvette-Anna Borg Cardona, assisted by Inspector Keith Caruana Darmanin. Lawyers José and Martina Herrera are representing the defence.