A man who had been found not guilty of acting as a financial institution without a permit had the original verdict overturned on appeal yesterday, and he was ordered to pay a Lm10,000 fine within one month.

In June 2006, 37-year-old Nazzareno Zarb from Marsascala was cleared of acting as a financial institution when he was not licensed to do so. The court noted that although it had been proved 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.

But the Attorney General appealed against the judgement, claiming that the Magistrates’ Court had incorrectly interpreted the law.

The Appeals Court, presided over by Mr Justice David Scicluna, said that the prosecution had managed to prove that Zarb had carried out an activity usually carried out by a financial institution and was also guilty of relapsing.

He therefore fined Zarb Lm10,000 which, if it is not paid within one month, will be converted into a six-month jail term.