Nexia BT Partner Manuel Castagna is the fourth person arrested along with Brian Tonna, Karl Cini, and former Prime Minister’s chief of staff Keith Schembri over money laundering allegations.
The Times of Malta quotes several sources identifying Castagna, Nexia BT’s partner for audits and human resources, as the fourth person who was arrested.
Castagna and several of his relatives were named on the court order freezing assets of over 100 companies and private citizens linked to the four men.
Schembri, Tonna, Cini, and Castagna were arrested over money-laundering allegations involving kickbacks from the investment-for-citizenship scheme launched under former Prime Minister Joseph Muscat.
This came after an inquiry into alleged kickbacks from the citizenship-by-investment scheme. Schembri was reportedly “given the disclosure of evidence” before being released, meaning he was given access to the conclusions of a magisterial inquiry into the alleged money laundering. The inquiry was concluded earlier this month.
According to a leaked report by the Financial Intelligence Analysis Unit (FIAU), Tonna transferred two €50,000 payments through Pilatus Bank to Schembri in what is believed to have been part of a kickbacks scheme.
Both men have denied any wrongdoing and said the €100,000 was the repayment of a personal loan given to Tonna by Schembri while the former underwent separation proceedings.
The loan was repaid through Willerby Trading, a British Virgin Islands shell company secretly owned by Tonna.
The same FIAU report also raised suspicions of the loan document presented to the bank to justify the payments after finding no trace of the original loan payment by Schembri to Tonna.
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