The directors of two car dealerships are expected to face charges this week in connection with the suspected manipulation of mileage gauges on Japanese cars imported to Malta.

The charges have been filed with the court registry by the Financial Crimes Investigations Department and three individuals are scheduled to appear before a magistrate in the coming week, the Times of Malta reported.

The accused individuals are Alexander Spiteri, the owner of Alexander Auto Sales, a company registered just last May, and Roderick and Alison Vella, who operate Rokku Auto Dealer.

They will be facing charges of fraud, money laundering, and conspiracy in relation to these alleged activities. The prosecution will also request that the court freeze their assets.

The alleged scheme began in 2019 and involved the acquisition of high-mileage vehicles from Japan at a lower cost, which were then imported to Malta. These cars had their mileage gauges tampered with in order to mislead buyers into believing they were purchasing vehicles with lower mileage.

The vehicles were sold after false information was entered into local systems, and counterfeit Japan Export Vehicle Inspection Centre (JEVIC) certificates were produced in Malta.

It is worth noting that JEVIC has a publicly accessible online system where vehicle data, including mileage, is recorded. Unfortunately, the data was not thoroughly verified by Maltese authorities, resulting in some cars having discrepancies ranging from 30,000km to 130,000km.

The Consumer Protection Authority had previously conducted its own investigation into this matter. When the case first came to public attention, car owners who believed their vehicles were tampered with were encouraged to officially report the issue to the Malta Competition and Consumer Affairs Authority. The authority had pledged to investigate these claims and facilitate compensation where necessary.

Earlier this month, the three directors contested a court order that they argue has severely impacted their businesses, causing their assets to be frozen and their families to face financial hardship.

Through their legal representatives, Franco Debono, Francesca Zarb, and Marion Camilleri, Spiteri and the Vellas claimed that the police investigation and the comprehensive asset attachment orders issued by the Criminal Court infringed on their fundamental rights.

It’s important to note that, as of now, they are considered innocent, but the orders remain in effect, having been renewed six months after their initial issuance. Due to these orders, both Spiteri and the Vellas are unable to conduct their business and maintain a decent quality of life, according to their argument.

They have submitted separate applications to the First Hall, Civil Court, within its constitutional jurisdiction, detailing the hardships they have experienced as a result of being subject to such a “stringent” legal measure.