A man was yesterday cleared of acting as a financial institution when he lent money with interest rates, after the court said the prosecution did not prove its case.

Nazzareno Zarb, 35, of Marsascala, was cleared of acting as a financial institution when he was not licensed to do so. The court noted that although it was proven that Mr Zarb lent money to several people, this was not done "for account and at the risk of the person carrying out that activity", as stipulated in the law.

Magistrate Consuelo Scerri Herrera said the prosecution did not prove that Mr Zarb had carried out an activity usually carried out by a financial institution. She said the man was not charged with usury but with acting as a financial institution without a licence.

She therefore cleared Mr Zarb of all the charges brought against him.

Police inspector Joseph Cordina prosecuted.