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Investigated company’s director admitted to ‘€6 million shortfall in clients’ assets’ Two of the directors of the investigated financial services company Malta Cross Financial Services Ltd, have today claimed that Jean Claude Bugeja - another director, who in August was suspended by the MFSA – admitted that there was an “undeclared €6 million material shortfall in clients’ assets.” Maltese Cross Financial Services Ltd Directors Stephen Spiteri and Robert Cutajar were replying to a judicial protest filed by 14 disgruntled investors who, on Tuesday, demanded the return of their investment and capital, which according to them was lost on account “of the company’s “negligence, illegal actions, and financial advice.” While denying ever handling the investments of the 14 investors, directors Stephen Spiteri and Robert Cutajar have insisted that in the days preceding August 7, Jean Claude Bugeja had admitted to the €6 million shortfall in the clients’ assets. “Upon being notified, the matter was immediately referred to the MFSA and the police so investigations could start as soon as possible. Moreover, the company’s operations were also suspended to avoid hindering the investigations.” In addition, the directors are blaming Bugeja for the shortcoming, claiming that the actions leading to the €6 million shortfall had occurred before they became directors of the company. “We were encouraged to take a 5% stake in the company, and in January 2013 we became directors. However, it transpired that at the time, there had already been serious problems within the company,” they said, while adding that the problems started in 2008 when the company was known as Island Financial Services Ltd. The directors also said that the Maltese Cross Financial Services Ltd’s offices are currently being controlled by the MFSA and the police, and that they do not have access to records. Furthermore, the directors also said that the investors are expecting that their capital was guaranteed “without explaining how they arrived at this conclusion.” Lawyers Roderick Zammit Pace and Stefano Filletti filed the counter-protest.