Court Upholds Ruling Against Calamatta Cuschieri Over €100,000 Investor Loss
In a recent legal development, the Maltese courts have upheld a decision by the Arbiter for Financial Services, confirming that Calamatta Cuschieri Investment Services Limited, a firm licensed by the MFSA, acted negligently in advising a client. The judgment, delivered on July 1, 2022 by Judge Lawrence Mintoff, ruled that the company failed to act in the best interest of its client, leading to an investment loss exceeding €100,000.
Inadequate Investment Advice and Gross Negligence
According to the court’s findings, Calamatta Cuschieri provided investment recommendations that were unsuitable for the client’s financial goals and risk profile. Judge Mintoff emphasized that the firm demonstrated serious and obvious shortcomings in fulfilling its regulatory duties.
The court pointed out that Calamatta Cuschieri failed to take into account the investor’s objectives and tolerance for risk, a clear breach of its obligations as a licensed financial service provider.
Key Individuals Involved
The board of Calamatta Cuschieri Investment Services Limited includes:
The company secretary is Kari Pisani (LinkedIn), who previously served at Sparkasse Bank Malta—a bank fined significant sums over anti-money laundering (AML) deficiencies.
Interestingly, Alan Cuschieri, Galea, and Calamatta also serve as directors of Moneybase Limited, another firm recently granted a license by the MFSA. Andrew J. Zammit, a partner at GVZH Advocates, is also listed as a director of Moneybase.
Conflicts of Interest Under Scrutiny
GVZH Advocates, the law firm connected to Zammit, frequently represents the MFSA in legal proceedings. This raises serious questions about potential conflicts of interest, especially given that the MFSA is responsible for supervising both Calamatta Cuschieri and Moneybase Limited. How the regulator can remain impartial while relying on legal representation from entities it oversees remains unclear.
Shocking Cash Withdrawal Raises AML Concerns
Further controversy erupted following courtroom testimony in which a witness with a criminal background stated he had either been—or still is—a client of Calamatta Cuschieri. The witness claimed to have withdrawn €500,000 in cash from the firm, despite its regulated status.
According to media inquiries submitted to the FIAU and Maltese authorities, concerns were raised regarding the possible money laundering aspects of this transaction. No official response has been provided so far.
Oversight and Accountability at the MFSA
Calamatta Cuschieri remains a licensed entity under the MFSA, whose key officials include:
-
Michelle Mizzi Buontempo
-
Edwina Licari
-
Christopher Buttigieg
These individuals have faced public criticism over the MFSA’s handling of enforcement, particularly for making undisclosed settlements with select licensed firms and failing to declare potential conflicts of interest.
If you have any relevant information regarding this case or other questionable regulatory practices in Malta, you are encouraged to share it with the Scam-Or Project.