Investors lose large amounts of money with John Dalli’s and Alfred Mifsud’s Crystal Finance

Published: November 6, 2014 at 9:02am

alfred mifsud

crystal finance directors

crystal finance interested parties

crystal finance shareholders

Alfred Mifsud of Crystal Finance

Alfred Mifsud of Crystal Finance

Both Alfred Mifsud and John Dalli are consultants to the Muscat government

Both Alfred Mifsud and John Dalli are consultants to the Muscat government

Claire Gauci Borda, who represents her father John Dalli's interests in various companies, including Crystal Finance, where she is a director

Claire Gauci Borda, who represents her father John Dalli’s interests in various companies, including Crystal Finance, where she is a director

John Dalli of Crystal Finance

John Dalli of Crystal Finance

MaltaRightNow carries a story this morning about how people who invested money through Crystal Finance have lost it.

Crystal Finance, which gave Joseph Muscat his first and only private sector job, is a financial advisory/investment services company regulated by the Malta Financial Services Authority.

It is owned by Alfred Mifsud, ex chairman of the Labour Party’s broadcast media, and – MaltaRightNow is missing this crucial and telling detail, but I can add it – by John Dalli, who is represented on the board of directors by one of his daughters, Claire Gauci Borda. The company details are uploaded here.

Dalli used to visit the offices of Crystal Finance for ‘secret’ meetings, when he believed no staff would be around to see, when he was EU Commissioner and barred from any such dealings.

A year ago, Alfred Mifsud (whose brother the wig-wearing Tarcisio, who worked for years at Enemalta, is currently undergoing prosecution in the oil-bribery case) accompanied the finance minister, Edward Scicluna, to a meeting of the World Bank in Washington.

On that trip, he was described as a financial consultant to the government. He has also said that he is up for the role of deputy governor of the Central Bank if it is offered to him.

Perhaps the invisible powers who persecute John Dalli made these investments fail deliberately. I am quite sure that this is what he will say – except that he doesn’t like it to be made general knowledge, of course, that he is in the financial services business with ex Super One chairman Alfred Mifsud.




72 Comments Comment

  1. admin says:

    maltarightnow.com/news/2014/11/06/ifallu-investimenti-ma-crystal-finance-investments?utm_source=twitterfeed&utm_medium=twitter

    http://daphnecaruanagalizia.com/2014/07/it-is-crucial-to-bear-in-mind-that-john-dalli-is-in-business-with-the-labour-partys-alfred-mifsud/

  2. Not Sandy:P says:

    For verification of the company name and number, see: https://opencorporates.com/companies/mt/C26761

  3. AE says:

    It is incredible how John Dalli’s name comes up wherever there is filth or some scam.

    He really has kept busy over the years.

    He also seems to have a lot of Labour friends. Maybe he never really was a Nationalist after all and infiltrated the PN to create the havoc that was then wrought. Or maybe he was just there in government for the business opportunities.

  4. ciccio says:

    Shall we ask Mary Swan if she knows where the lost funds may be?

  5. bravu l-ministru says:

    With all these stories breaking out, Joseph Muscat will soon be needing the services of Tabor Consult. I am sure John Dalli will give him a discount and won’t put him on the waiting list.

  6. pablo says:

    Again, here is some more of that “circumstantial evidence”. The teflon factor is wearing thin.

  7. Jozef says:

    Paul Bonello please note.

  8. Joe Fenech says:

    Serves them right. Next time they should have done their homework properly before acting like tits.

  9. curious says:

    Haven’t the people at Crystal Finance ever read l-Orizzont, it-Torca or heard Super One News?

    Alfred Mifsud should know a thing or two about sensationalist reporting since he was at Super One.

    The only difference is that he is at the other end of the stick on this one.

    “In a reaction, the company said it condemned sensationalist reporting.”

    http://www.timesofmalta.com/articles/view/20141106/local/crystal-finance-reacts-after-losses-report.542899

  10. Gahan says:

    Will Paul Bonello start a crusade against Crystal Finance Investment?

  11. Rorschach says:

    Is there no end to this John Dalli’s nefarious activities?

    He wouldn’t be out of place as the villain in one of Marvel’s superhero movies – possibly as the head of Hydra.

    Malta has featured in the Marvel universe before, so maybe Hollywood will be his next destination.

    http://daphnecaruanagalizia.com/2013/10/did-the-us-have-special-intelligence-on-josephs-passport-plans-after-all-last-night-malta-made-it-into-marvel/

  12. winston psaila says:

    With what has been going on these last eighteen months or so, journalists of practically any Western democracy, certainly of any European country, would be having field days tearing apart the powers that be.

    A few days ago an anchorman on Sky News interviewed an English M.P. who for reasons best known to himself decided to be very clever and facetious answering every question with another question. The interviewer politely but immediately cut him down to size with, “Around here, I ask the questions. The least expected of you is to answer in a truthful and possibly concise way with information relevant to my questions”.

    The M.P. gave him a look of an admonished schoolboy and behaved accordingly after that.

    Over here, we stand in awe of these twerps and shudder as they approach us. There are, of course, one or two exceptions.

  13. Superman says:

    Crystal Finance investments are on RTK radio this very moment. Of course, no mention on their failure.

  14. eve says:

    Mhux biex naqbez ghal Crystal Finance jew ghal John Dalli, lanqas xejn. Miniex xi esperta lanqas imma s-sens komun jghidli li kull investiment huwa riskju.

    Il-Eurobond fund kellu imghax gholi li allura jfisser riskju akbar.

    Kien maghruf ukoll li l-investiment kapitali mhuwiex garantit.

    • curious says:

      Skond min investa jekk hux fuq parir ta’ Crystal Finance jew kien jifhem x’qed jaghmel u accetta r-riskju.

    • La Redoute says:

      Why did so many Crystal Finance clients call the MFSA only to be told they weren’t affected as they hadn’t invested in that particular bond?

      If Crystal Finance’s clients don’t know what their investment is, how could they know how it works? More to the point, why was it sold to them in the first place?

      • Grace says:

        But that is why you pay money to have a financial advisor, to lead you, and when this person notes that the investment is starting to lose, he will suggest other alternatives.

        Without the help of an advisor, a person can invest online without nobody’s help, and without paying extra money.

      • La Redoute says:

        That, Grace, is exactly my point. Crystal Finance’s clients were badly advised – if they were advised at all.

    • ciccio says:

      According to TVM propaganda, this was not a complex bond.

      And TVM said also that investors “have not lost everything.”

      Why didn’t TVM tell its audience how much investors lost exactly?

      • Joseph says:

        A quick answer to this:

        Crystal Finance coupon was around 4.5% indicative of a low risk investment.

        However, Crystal Finance was investing in bonds with a coupon of 7 – 10%.

        They were playing with people’s money.

        To add insult to injury, they did not inform their clients in time that the respective investments were being downgraded. That would have saved millions of euros of Maltese people.

        They acted in a greedy way, risking people’s money and making a quick buck.

        This will be one of the issues which will be brought to court.

  15. Volley says:

    John Dalli has too many fingers in too many pies. I wonder how he sleeps at night.

  16. Peritocracy says:

    Meanwhile in the UK: The chief secretary to the Treasury is to urge petrol and diesel distributors to cut prices further after recent declines in the cost of oil.

    http://www.bbc.co.uk/news/business-29924710

  17. Wilson says:

    In the meantime: Labour government has the habit of backing the wrong horse: http://www.timesofmalta.com/articles/view/20141106/world/libya-faces-more-chaos-as-top-court-rejects-elected-assembly.542926

    i.e. all the contracts, contacts and agreements done two weeks ago in Malta are illegal as far as Libya is concerned. Will Vella go back to the EU and try for more support to the wrong guys?

  18. Tom Double Thumb says:

    What are the betting odds that John Dalli will be taking a holiday abroad, or maybe even making a second pilgrimage to Lordes with his brother? Preferred holiday destinations will include Libya, the Bahamas, or even China.

    He may then get a few more medical certificates (from the Tabor Consultancy Company) to preclude his return to Malta. He will perhaps do a Ryan Schembri disappearing act. That would ultimately be good for Malta but extremely bad for justice.

  19. GNU says:

    Hey Daphne,

    I see you’ve changed the website layout slightly. I’m really missing the “older” and “newer” buttons at the top of each article! Can we have them back please :)

  20. Sliem says:

    http://www.bbc.com/news/world-europe-29933050

    Two other member states, Ireland and Malta, are also being investigated as part of the EU’s crackdown on multinationals’ tax avoidance schemes.

  21. ciccio says:

    Crystal Finance is worried because of “sensational journalism” by In-Nazzjon Taghna and Maltarightnow.

    Sensational journalism would be if In-Nazzjon Taghna and Maltarightnow reported this news as:

    “Telf ta’ miljuni minn kumpanija ta’ HuBastjan u HuTarcisju.”

  22. Peppa Pig says:

    Min jaf kemm ingidmu cwiec li jisimghu u jibilghu dak kollu li johrog minn One radio fil-ghodu, inkluz l-ispots pubblicitarji tal-Crystal Finance.

  23. Chris Ripard says:

    Could somebody please explain how Mr Mifsud screamed blue murder when Mr Dalli sold Mid-Mid on our behalf? What happened? Did they kiss and make up?

  24. jim says:

    off topic : petrol-diesel prices falling. Why not here?

    http://www.bbc.com/news/business-29924710

  25. ken il malti says:

    The Mifsud brothers should have invested all that money in high quality wigs for men, of the sort that Tarcisio wears.

    It would have been a sure thing, money wise.

  26. Jonathan says:

    Thanks, Daphne, for this information. I think you ought to investigate much further. All the shareholders you have shown us above, including Alfred Mifsud, are also involved in Allcare Insurance.

    Earlier this year that company reported a loss of around 850,000 euros, yet despite its lack of solvency, it seems to be the government’s insurance broker of choice.

    Around 70% of government insurance brokerage business is going to Allcare, with Alfred Mifsud’s canvassing and with their ex-employee, the prime minister of Malta, giving them a helping hand.

    What was that slogan – Malta Taghna Lkoll?

  27. ciccio says:

    Why didn’t Crystal Finance invest its clients’ money in Gasol plc considering the confidence the Prime Minister and Konrot Mizzi have in its prospects? It has a hole of £13 million in its shareholder equity and could have used some of those funds.

  28. Jonathan says:

    Shouldn’t the governor of the Central Bank not be involved or have any conflict with any entity connected with the financial services?

    Doesn’t this rule, or any sort of code of ethics, apply to Alfred Mifsud? It seems not.

  29. A. Charles says:

    “Xi Jinping’s presidential plane was used to smuggle ivory from Tanzania to China when the Chinese leader toured Africa last year, according to an undercover investigation by a British based campaign group.

    The Environmental Investigation Agency (EIA) claimed the black market price of ivory doubled, in March 2013 to $700 per kilogram, as the president’s entourage took advantage of his first foreign tour to buy “thousands of kilos of ivory.”

    http://www.thetimes.co.uk

    Lovely industrious role models for the Labour government.

  30. il-Ginger says:

    Alfred Mifsud or Argus Filch

  31. Watcher of lies says:

    “With its lies, its cover-ups, its legalised theft, its bribe-taking and its other triumphs.”

    http://www.telegraph.co.uk/news/worldnews/europe/russia/11212072/Russian-actor-and-Putin-critic-found-dead-in-Moscow.html

    • Ares says:

      “State Investigative Committee told Interfax there were no signs of violence on Mr Devotchenko’s body, and he may have died by striking his head while drunk.”

      Where have we heard that before?

  32. PWG says:

    Alfred Mifsud , and many others like him, never lost an opportunity to criticize the PN on all matters concerning finance, giving the impression that he had a ready solution to all problems.

    Many a switcher were taken in by his civil comportment. It seems like the guy is not infallible after all.

  33. anthony says:

    Who needs Josef Bonnici ? Dump him subito.

    Let’s have Alfred Mifsud as governor of the Central Bank as soon as possible with his brother Tarcisio as deputy.

    Maybe Dalli with his vast experience in charitable institutions in the Bahamas can be their consultant and Silvio Zammit CEO.

  34. Dissident says:

    But, who would trust their money with such people?
    http://i.imgur.com/1dnVLTy.jpg

    • canon says:

      Most probably followers of Super One.

      • Joseph says:

        I would leave politics out of this issue. The information we have is that there are investors from both sides of politics.

        The products offered 3-4 years ago were of reasonably good quality.

        However, recent products were practically junk-rated. This caused a false sense of security in investors. Crystal finance tried to make excessive profits (5-6% on some products) at the expense of their clients, by taking excessive risks.

    • Joe Micallef says:

      The same people who trust Muscat as Prime Minister is large enough a market.

    • Tabatha White says:

      That, is the question.

  35. edgar says:

    Would not buy a second hand car from a guy with slimy, greasy hair over his neck let alone invest with him and of course knowing that J.Dalli.BA was involved, I would run a mile.

  36. David says:

    As those in the know will tell you, many investments are risky and no stockbroker or financial consultant can predict their future. I think that these persons or their companies would be responsible if they know that the companies where assets are invested are financially unsound.

    • Tabatha White says:

      Even where logic is perfect, if you have a situation of Garbage In, you get Garbage Out as a result.

      We are not talking about logic perfect situations, we are talking about corrupt elements in the inputting process, in the foundation chain of element: the “sinsla,” as Maltese would have it.

    • Joseph says:

      With coupons of 4.5% – 5%, Crystal Finance should have invested in investment-grade companies.
      Instead they invested in junk bonds, so that they could make a quick buck.

      It is like playing in a casino with other people’s money.
      They never advised their clients of the high risk investments that they were making. This practically amounts to fraud.

  37. kev says:

    Mela ma bqajtx taggornahom lill-qlafat dwar Dalligate? You even get a mention this time.

    Here is Part IV: EU judges, Maltese mysteries, and Christians in the Caribbean

    http://euobserver.com/smoke-and-mirrors/126124

  38. ciccio says:

    Financial and economic update:

    Last week, Bank of Valletta published a preliminary statement of its results for the year to 30 September. Did anybody notice?

    The Bank announced a drop in profit before tax by 10% and a reduction in dividend payment of 22% (after correction for bonus shares issued earlier this year).

    Total net dividends paid in respect of 2013 were Eur 37 million. The total net for this year is expected to be Eur 29 million. 25% of dividends are paid to government, so the government’s budget will receive Eur 2 million less from BOV this year.

    The other shareholders will receive Eur 6 million less in net dividends. So much for Labour’s promise of “inhallu izjed flus fi bwiet in-nies.” Pensioners whose savings may be tied up in BOV shares are the ones to be impacted most.

    The tax expense was about Eur 1.6 million less than in 2013.

    If the decrease in tax is fully reflected in cash expense (details of tax figure not yet available), the total impact on the government’s revenues this year would be a decrease of Eur 3.6 million. The Minister of Finance will have to make up for that figure from other departments in the budget of 17 November. Taxpayers who are also Bank shareholders will get a second blow.

    With its 25% shareholding, the government is in a position to influence the policy of the Bank. It appoints the Chairman and some directors.

    Besides, BOV is a friendly bank to the Labour government. The Bank’s Chairman is a well known Laburist, even if his doom and gloom reputation is more likely to be a handicap to government in this case. The Bank’s employees are predominantly members of the GWU – a union which was once married to Labour, and despite their separation, the two never got out of the same bed.

    The Bank accounts for about half of the domestic banking system and half of the Maltese economy, and it is one of the most recognised banking brands in Malta for deposits and advances.

    One can argue that the Bank’s accounts are effectively a representative statistic about the Maltese economy.

    In fact, there are two very striking movements in the figures reported by the Bank, which are of course impacting on the numbers mentioned above, and which say a lot about the economy.

    1. Customers’ deposits. These increased by almost Eur 1 billion (“elf miljun”) (Eur 900 million to be precise, but Emmanuel Mallia will not notice) year-on-year.

    2. Loans and advances, which increased by only Eur 200 million year-on-year. Loans and advances had decreased by around Eur 35 million in the year to 30 September 2013.

    There is a very wide difference between those two movements this year. In recent years, the increase in loans and advances was more in the region of 50% of the increase in customers’ deposits. Besides, customers’ deposits have never increased by this much in recent years.

    Unless there has been some external factor, like an injection of deposits from foreign sources – and unless the cash held under the mattress, and later banked, by Emmanuel Mallia was far more than Eur 500,000 as reported in his declaration to Parliament – then the two numbers taken together suggest that the Bank is not finding investment opportunities in the economy to employ the deposits coming in from customers. If this is the situation in the other banks, then the banking system is highly liquid – which may be a good sign about the banking system – but it would be a sign of weaknesses in the economy. It suggests that Joseph Muscat’s government has not created enough investment opportunties, which in turn lead to jobs and to a return to the banks, their shareholders, and savers. It also suggests that the people are not consuming, preferring to deposit their cash at the banks, and that they are postponing their spending. An indicator, maybe, of fear of deflation? A reflection of the declining retail sales?

    And the rate of increase in loans suggests that the growth in the investment potential of the economy has been really slow. Considering that own funds of private operators are usually less than amounts loaned by the banks (resulting in gearing), the contribution by the Bank to economic growth seems very low.

    These indicators are not inconsistent with the situation in the Eurozone, where the risks of deflation remain, despite some relief from marginally higher inflation registered in October compared to the previous month. Earlier this week, the EU Commission cut the Eurozone’s growth forecasts for both 2014 and 2015. On Thursday, the ECB retained the interest rate at a record low of 0.05%, and Mario Draghi promised further economic stimulus if necessary.

    http://www.bbc.com/news/business-29933943

    Meanwhile, the Bank has used the liquidity to expand its loans to banks and the portfolio of investments. The latter, which is up by 45%, includes the Bank’s holdings of Malta government stocks. A breakdown of the investments line is not available in the preliminary statement, so one will have to wait until the detailed annual report is published in order to comment in detail. Until then, one hopes that there is not a huge increase in loans to the unproductive government, where Joseph Muscat promised a 25% cut in bureaucracy. But given that the government’s deficit and debt seem to be out of control, then it would not come as a surprise to find it accumulating on the Bank’s balance sheet.

    But every cloud has a silver lining. Joseph Muscat cannot make everyone happy, but some people thrive on the misery of others. Sandro Chetcuti, Labour’s volunteer, must be salivating at the thought of all that cash in the banking system. He is probably thinking how he could convince Joseph Muscat to mop it up in order to buy stocks of empty apartments from developers for use in social housing, to be distributed “lil tal-qalba.” Ahead of next year’s local elections – which Muscat has reluctantly agreed to hold after his power plan got off track – he is unlikely to need much convincing.

  39. Peppa Pig says:

    Should anyone insured with ALLCARE get worried after reading the article above?

    • Joseph says:

      Recent actions taken by crystal finance indicate they are on the brink of insolvency.

      Their are more bubbles which are *very likely* to burst in the near future such as investments in Ekotechnika GmbH and possibly also Rickmers GmbH.

      Although Allcare and Crystal Finance are separate entities, the trustworthiness of their management is unfortunately hitting the bottom.

  40. Jonathan says:

    Well, Peppa, the same people involved in Crystal Finance are involved in Allcare – so you can do the math.

  41. Joseph says:

    Anyone interested please note that an association for the affected Crystal Finance clients has been set up:

    https://www.facebook.com/pages/Crystal-Finance-Investments-MALTA-complaints/812749918787475?sk=info&tab=page_info

    Clients are invited to submit info at:
    [email protected]

    We will be compiling evidence for the following non-compliance of Crystal Finance Investments:

    1. CFI has included products in their investments which were not suitable or were of high risk in nature;

    2. CFI did not act diligently in that no timely advice was given on the status of their products

    3. CFI was investing in products of high risk nature exposing their clients to substantial risks,
    while the clients were paid coupons which were
    indicative of low risk.

    4. CFI charged excessive rates when the clients
    tried to redeem products which were problematic in nature.

    5. CFI did not explicitly state and communicate the high risk nature of their investments to their clients, prior to when investment was carried out.

    In particular, we would like to invite clients of CFI which hold products containing the following investments:

    MOX Telecom GmbH
    RENA GmbH
    Ekotechnika GmbH
    Rickmers GmbH
    MAG IAS GmbH

    We invite any other clients who might have other problematic investments related to Crystal Finance Investments.

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