Clients of CCFunds Sicav plc, part of the Calamatta Cuschieri Group in (CC Finance Group plc) in Malta, have lost significant money during 2022. However, the owners of CC Funds have enjoyed hefty income, despite the losses suffered by their clients. Clients who invested in High Income Bond Fund lost from 10% to 22% in 2022. The Growth Strategy Fund recorded a loss of almost 17%. The financial statements also reveal that clients have started pulling out their investments from CCFunds.
The CCFunds SICAV, an MFSA-licensed Collective Investment Scheme, was launched in 2011 and has an aggregate Assets Under Management (AUM) of over €100 million spread over 7 distinct sub-funds, the website informs. The directors are Alexander Cuschieri, Alan Cuschieri, Carmel John Farrugia and Nicholas Calamatta. The investment manager of the fund is Calamatta Cuschieri Investment Management Limited.
Calamatta Cuschieri bills itself as a financial expert and runs funds with other people’s money. They have a conflict of interest because they are financial advisors and fund owners at the same time. The equity funds run by Calamatta Cuschieri are not only underperforming markets; some are almost all in the red, meaning people have lost money.
Despite clients seeing their savings shrinking considerably, Calamatta Cuschieri managed to rake in some €1.2 million in management fees and €256,000 in administration fees. Other fees and charges consisted of almost €500,000. While clients lost millions, CC Funds directors still enjoyed their directors’ fees.
It is now several months since shocking court testimony in Malta revealed that Calamatta Cuschieri Investments Services Limited serviced convicted criminals and dealt in huge amounts of cash with the same. In June 2022, Joseph Difesa admitted in court that he withdrew €500,000 in hard cash from Calamatta Cuschieri. No denial was issued by the Maltese license holder.
Malta’s FIAU is still to make a move. Some clients have already sued Calamatta Cuschieri for losses suffered. Calamatta Cuschieri was found guilty of negligence and did not act in the client’s best interest. The Judge, in his judgment, ruled that Calamatta Cuschieri Investments Services Limited was guilty of serious and glaring shortcomings.
