Financial Crime World

MALTA PONZI SCHEME ROCKS NATION: HOSPITAL DEAL EXPOSED AS MASSIVE MONEY-LAUNDERING OPERATION

A massive Ponzi scheme involving Malta’s hospitals has been uncovered, with public funds diverted into private hands. The alleged scam was orchestrated by a close-knit group of politicians, enablers, and front men.

The Scheme Unfolds

According to sources, the supposed investors behind Vitals, a company entrusted to run three public hospitals, did little more than take in millions from the government without making any substantial investments. Instead, private funds were largely used to refund earlier investors or absorbed by those connected to Vitals.

The Key Players

  • Keith Schembri and Konrad Mizzi: Former government officials with a secret stake in Technoline, a medical supply company.
  • Brian Tonna: A “professional money launderer” who set up secret Panama companies for Schembri and Mizzi.
  • Ivan Vassallo: Owner of Technoline on paper, suspected to have created fake invoices to legitimize kickback payments.
  • Chris Spiteri: Auditor who allegedly accepted a €50,000 bonus from Steward to give the company’s books a clean bill of health.

The Charges

Former Prime Minister Joseph Muscat, Schembri, and Mizzi have been charged with criminal association. Other officials, including Chris Fearne, Edward Scicluna, Joseph Rapa, Alfred Camilleri, and Ronald Mizzi, have been charged with fraud.

The Consequences

The scandal has sent shockwaves through Malta, leaving many wondering how such a massive scheme went undetected for so long. As investigations continue, questions are being raised about accountability and justice for those involved.

Key Takeaways

  • €5 million was used to buy Technoline, with Schembri and Mizzi set to reap the benefits.
  • Investigators suspect that Schembri chose not to report the fraud in 2017, instead using the information as leverage to oust Vitals and usher in Steward.
  • Auditors, lawyers, and accountants were allegedly complicit in the scheme.
  • The scandal has led to charges of criminal association and fraud against several officials.