Jason Farrugia MGA Money Laundering Scandal
In 2022, the former Chief Technology Officer of the Malta Gaming Authority Jason Farrugia was charged with a series of serious crimes undertaken while in his position. In this guide, we’ve covered the Jason Farrugia MGA money laundering scandal and the court case that followed.
An Overview of the Topic
We’ve broken down the Jason Farrugia scandal piece by piece to ensure that you learn the full story. To get started, we’ve covered the moment that Farrugia was fired by the MGA after he was investigated for serious breaches. We’ve then looked at his charges, before exploring the court case.
The last two years have seen the MGA scrutinized heavily for money laundering concerns, so we’ve also looked at the effect that the case has had on the regulator and its future. You can use the following buttons to jump to each section or continue to scroll through to read the complete story.
About the Scandal
The Jason Farrugia MGA scandal contains many elements that saw the former Chief Technology Officer (CTO) involved with some dark criminal characters. The case also saw Jason Farrugia’s wife, Christine, charged with similar crimes in court proceedings that have shaken the Malta Gaming Authority to the core.
His crimes are quite diverse, and involve using his role to access confidential information to trade with illegal online gambling groups. Fortunately, none of these groups were trusted Maltese online casinos. The case has also been tied to several other corruption cases and even a murder.
Jason Farrugia Fired
In December 2021, Jason Farrugia was fired by the Malta Gaming Authority. After a routine check of his work devices, it was revealed that Farrugia had accessed sensitive MGA data and copied them to his personal account. At first, it was unclear what Farrugia’s intentions with the data would be.
Farrugia, who had worked for the MGA for 10 years, was investigated by local enforcement, including the Financial Crime Investigation Department. The firing came at a time when the MGA was dealing with several other serious scandals relating to former employees and their connections to criminal groups.
In March 2021, former CEO of the MGA Heathcliff Farrugia was charged with corruption. He was accused of insider trading information about rivals with Yorgen Fenech, a disgraced businessman and owner of several casinos in Malta. Fenech is believed to have ordered the execution of Daphne Caruana Galizia, a journalist.
Galizia investigated government corruption surrounding an energy deal made with one of Fenech’s companies. In the same year, the global Financial Action Task Force (FATF) put Malta on its grey list for failing to identify and pursue money launderers and shell companies in the region.
Farrugia Charged
Five months after he was fired by the MGA, Jason Farrugia was charged with a number of offences, including fraud, extortion, and money laundering. The offences were uncovered after a thorough investigation, with the MGA working closely with police to uncover all of the alleged crimes.
The full list of his crimes related to the Jason Farrugia Malta Gaming Authority case includes money laundering, disclosing confidential information, trading in influence, extortion, computer misuse, accepting bribes, and fraud in excess of €5,000. Christine Farrugia, Jason Farrugia’s wife, was also implicated in the investigation and charged with similar crimes. Both pleaded not guilty and their bail requests were denied.
Farrugia Face Court
In May 2022, Jason and Christine Farrugia made their first court appearance and it is then that the full scale of the couple’s crimes was revealed. One of the biggest revelations was that Farrugia has allegedly disclosed internal MGA affairs and made illegal business plans with Iosif Galea, another former MGA employee.
Farrugia was accused of receiving over €11,000 in bribes from Galea for the information. Galea was also arrested shortly before the case. Before Farrugia was fired by the MGA, he was informed by the regulator that he was under investigation and his account was blocked. There is evidence that he attempted to bypass these blocks.
According to Malta’s Cybercrime Unit, Christine Farrugia had also been issued cheques by Galea that amounted to over €29,000. Christine claimed to be unaware of the cheques and when pressed about why her signature was on them, she said that she did not recognise the signatures.
Farrugia was also accused of leaking sensitive invoices to a news website. It was found that Farrugia has copied the invoices, saved them to his desktop, and placed them in a zip file. Additionally, Farrugia never declared the earnings from the cheques, which has put him in hot water with the tax department.
After the court appearances, both Christine and Jason Farrugia were released on bail and the court case was adjourned.
The Aftermath
Since the first court appearances in May 2022, there has been no court date set for the criminal proceedings against the Farrugias. It is expected that the case will be held sometime in 2023. As the case begins to mount against the couple, things aren’t looking good for them.
The MGA and Money Laundering
The court case came at a sensitive time for the Malta Gaming Authority. Aside from the fact that the former CEO of the company was charged with corruption, the MGA were given a grey list notice from the Financial Action Task Force for failing to adequately tackle money laundering.
The last year has seen new appointments for both the CEO and Chairman roles for the MGA, with two lawyers taking the reins. In good news for the MGA, the regulator has been taken off the grey list due to its improved action against these crimes and for adequately sharing data with global enforcement agencies.
Frequently Asked Questions
If you still have questions about the Jason Farrugia MGA case, keep reading. Here, you will also find some commonly asked questions about this topic. If you’re looking for more detailed answers related to the Jason Farrugia Malta Gaming Authority scandal, use the links in each to jump up to the relevant sections.
1️⃣ What was the scandal that Jason Farrugia was involved in?
Jason Farrugia was accused of several crimes that he allegedly committed during his time as Chief Technology Officer for the MGA. At first, the scale of his offences was unclear, but after a court appearance in May, the Jason Farrugia Malta Gaming Authority case was continued and he has been charged with a string of serious offences.
2️⃣ Why was Jason Farrugia fired?
Initially, Jason Farrugia was fired for accessing sensitive data that he was deemed not to have any right to access. This was after he was investigated for several weeks by the MGA. Once he was fired, the MGA contacted the police and a formal investigation into his deeds began.
3️⃣ What was Jason Farrugia charged with?
There are a series of crimes that both Jason and his wife Christine were charged with. These include money laundering, the disclosure of confidential information, trading in influence, extortion, computer misuse, accepting bribes, and fraud in excess of €5,000. There appears to be plenty of evidence against the pair though both have pleaded not guilty.
4️⃣ What was the outcome of Farrugia’s court appearances?
In May 2022, the Farrugias faced court where they were officially charged with a string of serious crimes. The couple had been arrested four months after Farrugia was fired. A number of investigators and MGA employees shared testimony against the pair. Both were granted bail but deny any wrongdoing. A court case has yet to be scheduled.
5️⃣ What’s the MGA’s policy toward money laundering?
The MGA has strict policies surrounding money laundering that have been improved over the last two years in the wake of several high-profile scandals for the regulator. Money laundering is a serious crime, and it's likely that criminal groups gravitate toward Malta due to its gambling industry.