WhosWho.mt has learned of a sophisticated scheme targeting Maltese business owners, in what appears to be either an elaborate scam or a front for money laundering operations.

At least two separate cases have surfaced where local entrepreneurs were personally contacted by foreign companies offering to acquire their businesses. In both instances, the businesses were not listed for sale, yet the owners initially engaged in discussions, unaware of potential foul play.

Case 1: Hotel Owner’s Close Call

In one case, the local owner of a hotel was approached by a foreign investment firm expressing interest in acquiring his property. The investors even went as far as appointing a local architect to inspect and value the hotel. The owner was asked to propose a price, which the foreign company immediately accepted. They claimed to have already received an ‘initial valuation’ and were satisfied with the amount.

However, things took a suspicious turn when the foreign firm insisted the owner travel to Milan for further discussions. They also stated they would pay €250,000 above the agreed price but required the excess amount to be repaid to them in cryptocurrency, as it was their commission for acting on behalf of another investor.

The hotel owner grew wary and contacted the local architect, who revealed he had not yet invoiced for his valuation services. In fact, he had merely inspected the property but had not yet submitted a formal valuation report. When the architect requested payment before completing the report, the foreign investors told him they would compensate him only after the deal was concluded. This further raised suspicions. When the hotel owner later asked the foreign firm about the valuation report, they falsely claimed to have already received it. At that point, the businessman realised the deal was dubious and ceased all communication.

Case 2: Michelin Restaurant Director’s Suspicion

In another instance, the director of a Michelin-rated restaurant was contacted by a foreign company expressing interest in buying his establishment.

Initially hesitant, he reconsidered after the investors offered an attractive sum. However, the deal took an odd turn when the foreign firm insisted, he travel to Barcelona for further discussions. When the restaurant owner suggested that they visit Malta to experience the restaurant instead, they continued pressing him to travel abroad at their expense.

Sensing something was amiss, the director consulted his accountant, who advised him to request specific documentation to verify the legitimacy of the foreign investors. Upon doing so, the investors abruptly cut off all communication.

Reflecting on the situation, the restaurant owner stated, “The options are several – from kidnapping to fraud to money laundering. For sure they were up to no good, and I want local business people to be aware of what’s happening.”

Financial Expert: ‘Local Business Owners Must Stay Vigilant’

A financial expert who spoke to WhosWho.mt stated that while the exact intentions of these foreign investors remain unclear, the warning signs were evident.

“It is possible that they intended to purchase the hotel and restaurant to launder money, unaware that the transactions would eventually be flagged. Some money launderers acquire properties without proper due diligence on valuation, as their primary concern is moving illicit funds. Alternatively, these could have been elaborate scams designed to defraud the business owners once they travelled abroad.

“Regardless of the exact scheme, local entrepreneurs must remain cautious when approached with unsolicited offers, particularly if the investors insist on meetings abroad or if the investment firm lacks an established reputation and clear corporate structure.”

Have You Been Targeted?

WhosWho.mt is interested in hearing from any local business owners who may have encountered similar suspicious investment proposals. If you have a similar experience to share, please reach out to us at [email protected].