Notary investigated for fraud

The police is investigating complaints against notary Pierre Falzon over misappropriation of taxes paid on property contracts, after Falzon left the island. His whereabouts are still unknown.

31 January 2011, 12:00am
by James Debono

2 min read

A spokesperson for the parliamentary secretary for lands confirmed knowledge of the notary’s disappearance. “Government is informed of stories surrounding the alleged disappearance of Notary Pierre Falzon and the police are carrying out investigations for fraud.”

Parliamentary secretary Jason Azzopardi is currently working on a bill that will be proposed to Cabinet to overhaul the law that regulates the notarial profession. “Amongst the numerous reforms being proposed are measures that will be designed to impede such behaviour from repeating itself,” the spokesperson said.

Official sources have also confirmed that the notary has not archived any contracts in the public registry since June 2000.

This means that clients who used his services since 2000 cannot access contracts related to properties bought or inherited after that year, as these are not available at the registry. Some clients are even discovering that they have to pay the stamp duty on property acquired, because the notary never forwarded this money to the government.

Notary and Lija mayor Ian Castaldi Paris told MaltaToday that he is assisting a number of clients complaining about contracts that were not enrolled in the public registry and did not have the stamp duty and government tax paid.

“As a notary and politician I want things to move along to ensure that these cases are not allowed to happen,” Castaldi Paris told MaltaToday.

Castaldi Paris is presenting a number of proposals to make the profession accountable. “It is not acceptable to have notaries who do not archive contracts for over a year.”

He also proposes a system of checks and balances for contracts issued by notaries to ensure that these are enrolled and the stamp duty is paid. Castaldi Paris also advocates harsher penalties for notaries in breach of regulations, describing the present fines as “ridiculous” and an easier process for the suspension and revocation of warrants.

He also believes that notaries who remain in breach of regulations after being warned should have their names published.

Pierre Falzon is not the first notary to be investigated for fraud. Former notary and MP Sandro Schembri Adami was handed five suspended jail terms after admitting to collecting duties on property transfers that were never transferred to the government. In March 2010 he was found guilty of misappropriating €73,292 belonging to 16 people.

James Debono is MaltaToday's chief reporter on environment, planning and land use issues, ...

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Reading through this article I cannot help but question what is being done in order to regularise the position of those clients who suffered from the actions taken by Dr Pierre Falzon? I thank Dr Castaldi Paris for his efforts to amend the law and introduce harsher penalties and checks and balances in order "to ensure that these cases are not allowed to happen". Nevertheless this does not provide any form of redress to those clients who used the services of Dr Pierre Falzon and are discovering that the stamp duty they paid on property acquired has never been forwarded to the government. In addition, it appears that it has been evident for a number of years that Dr Falzon was acting irregularly since "the notary has not archived any contracts in the public registry since June 2000". I dare say that those aware of such irregularities have acted negligently and irresponsibly if they didn't do what is considered necessary to ensure that the public is not misguided but kept informed of such malpractice instead. And what about the government's responsibility? Isn't Dr Falzon a trusted notary warranted to collect stamp duty and other taxes on behalf of the government of Malta? How does the government plan to proceed in this regard? Will Dr Falzon be sued for malpractice, fraud and misappropriation of funds and will his dues be settled? It is unfair that clients trusting the notary in good faith should bear the burden. Some form of guideline needs to be provided to those who suffered from this malpractice. No unilateral court action shall provide sufficient pressure on the relevant authorities such that the issue is resolved with minimum harm to people acting in good faith. I suggest that people are guided to act together and exert pressure such that a solution satisfactory to all is found. In the meantime people are acting erratically, spending their money in seeking legal advice and maybe taking action for a case which is better dealt with, in a court class action.

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Whilst he is at it, the Hon Dr Jason Azzopardi should consider including in his new Bill to regulate the notarial profession, the following consideration: As things stand today, when one wishes to acquire a copy of anotarial deed from the Govt. Archives Office near Hastings Gardens in Valletta, one is never certain of the outcome. The first thing one is asked by staff at the office is who is the Notary concerned. I have come across repeated instances where as soon as one mentions the name of a particular Notary, one is told each time: "Ta' dak in-Nutar m'ghandna xejn ghax dak qatt ma' jibghatilna kopja" - and this even after a number of years from the signing of the deed. One is left no alternative but to go to the Notary concerned and ask him for a copy, and of course one has to pay whatever the Notary decides to charge for it. The proposed Bill should make it mandatory for Notaries to submit a copy to the Notarial Archives Office within a stipuilated timeframe.

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It is unfair on the notary's clients to have to pay the tax they already entrusted to him. By paying the government is satisfied and I wonder how hard it will then work to bring the culprit to justice.

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I have just been to Germany (and back) last week and at no point did anyone ask me for a passport or any form of identification. I could have been anyone traveling with a false name. This Schengen agreement sucks big time. It should be removed ASAP.