The former director of Maltese Cross Financial Services, Jean Claude Bugeja, today pleaded not guilty to money laundering, and misappropriating €4million invested by approximately 50 to 60 clients.

The defence did not make a request for bail, saying it is still early to do so at this stage.  The accused has been remanded in custody. 

Police Inspector Ian Abdilla requested the accused's assets to be frozen, both in Malta and abroad, a request upheld by the court.

In August, 14 investors filed a judicial process, demanding the return of their investment and capital.

Directors Stephen Spiteri and Robert Cutajar insisted that Jean Claud Bugeja had admitted to the € 6million shortfall of client's assets.

In addition, the two directors said that the company was already in trouble when Mr Bugeja offered them directorship, and 5% share of the company, however the accused told them otherwise.

The negligent operations started back in 2008, and Mr Spiteri and Mr Cutajar said they did not handle any of the investments of the 14 investors who filed the protest.

After the matter was reported to the MFSA, investigations by the police started immediately, and the company's operations were suspended.

Dr Joe Giglio represented the accused. Magistrate Doreen Clarke presided. 

Dr Gianella DeMarco and Dr Stefan Filetti represented some of the investors.