Investigated financial services company to go to court over lost investments

14 disgruntled investors have filed a judicial protest against financial services company Maltese Cross Financial Services Ltd, claiming that the latter’s “negligence, illegal actions, and financial advice,” caused them to lose their investments.

On 22 August, the Malta Financial Services Authority (MFSA) announced that it is carrying out investigations over the “material shortfall … arisen from the possible misuse and manipulation of such assets.” Moreover, MFSA explained that the police have been informed of its findings.

Apart from the MFSA’s and police’s investigation, Maltese Cross Financial Services Ltd, and its directors – Jean Claude Bugeja, Robert Cutajar and Stephen Spiteri – have a judicial protest to answer to.

On 7 August , the MFSA banned drector Jean Claude Bugeja from giving any financial advice and from accessing the company’s records, IT systems and offices.

Filed this morning by lawyers Adrian Delia and Kris Scicluna on behalf of 14 investors, the judicial protest is claiming that despite being informed by the MFSA that the defendant company’s operations have been suspended, they heard “nothing else since” – effectively leaving the plaintiffs in the dark about their investments.

Unconfirmed reports have put the investments at €1.3 million.

The plaintiffs are also claiming that the “material shortfall in their assets” was caused by the company’s “negligence.”

“After the MFSA said the company has a material shortfall in its assets, it now looks that the plaintiffs suffered considerable losses due to the company’s negligence, and disregard to its legal obligations,”

“Consequently, the plaintiffs are demanding that Maltese Cross Financial Services Ltd reimburse their capital and interest. They also request detailed accounts of the investments made with their money,” the lawyers held.