Former MGA CEO loses appeal in AML inspection leak case

The original case involved ex-MGA CEO Farrugia leaking information on an upcoming AML inspection at Casino Malta to its rival business Tumas Gaming’s CEO Yorgen Fenech.

Fenech is alleged to have been involved in the murder of Maltese journalist Daphne Caruana Galizia. Police found messages between Fenech and Farrugia during Fenech’s arrest.

In that conversation, which dates back to September 2019, the MGA CEO mentioned the Casino Malta inspection. He also told Fenech he would attempt to slow down a report on a recent compliance inspection on Tumas Gaming.

Farrugia was found guilty of three out of four charges and handed a conditional discharge to prevent him from reoffending. He was ordered to cover the costs of court expert Keith Cutajar.

Part of the conviction related to Farrugia revealing “a secret that was entrusted to him”.

What did Farrugia appeal?

In his appeal, dated 12 June 2024, Farrugia argued there was no such definition of what was considered a ‘secret’ by Maltese law.

Court documents from the appeal show Farrugia defended his conversation with Fenech. Farrugia insisted he was trying to calm the casino owner down.

Farrugia said he was concerned a prospective fine for compliance failings could be used against him as political ammunition.

He also argued there was no “malicious intent” in his communication with Fenech. He, as CEO for the regulator MGA, “felt the need to reach a balance between being the regulator and remaining close with operators”.

Finally, Farrugia insisted there was no formal proof that he even knew the inspection would occur, or that Fenech wasn’t already aware of the casino inspection.

Farrugia stepped into the role of MGA CEO in April 2018, succeeding Joseph Cuschieri.