Man cleared of misappropriation as Court uncovers ‘unacceptable private loan’

Kevin Zammit, 36 of Zebbug was cleared of misappropriation charges by Magistrate Audrey Demicoli this morning, who ruled that the accused never committed the crime.

Instead, the Magistrate hit out at businessmen John and Raymond Farrugia who had in fact reported Zammit for having committed the misappropriation.

From evidence produced during the hearings, it transpired that John and Raymond Farrugia had loaned a substantial amount of money to Zammit in 2004.

As collateral to that loan, the Farrugia's had asked Zammit to sign a promise of sale on an apartment in St. Paul's Bay. But while Zammit failed to catch up with his private loan repayment, he sold the same property to another person, and registered the deed.

The Court noted that Zammit was forced to sell that property because he was short of cash, and the Farrugia's knew that the sale was going through.

It was explained that the promise of sale of the apartment to the Farrugia's served as a mere guarantee, and the Farrugia's never had any intention to buy the said property.

The Farrugia's who felt aggrieved by the sale, reported Zammit to the police for misappropriation, only to have the case thrown out.

In its judgement, the Court stressed that John and Raymond Farrugia "used unacceptable methods" to hide the fact that they were lending money, by creating false promises of sale.

"Raymond Farrugia even produced a contract, which in all probability never even existed," the Court said, adding that from all the evidence produced, no misappropriation ever took place.

The fact that Zammit did not repay his loan in the agreed time frame, is just a matter of contractual obligation, but not misappropriation.

Kevin Zammit was cleared of all charges.

Lawyers Emmanuel Mallia and Arthur Azzopardi appeared for Zammit.