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Maria Magdalena Sultana Money Laundering Case

Kevin Morales, EU & Compliance Editor at Scams.info

Article by: Kevin Morales - Casino Еxpert

Date Published: 20/03/23

In 2021, the story of Maria Magdalena Sultana and her money laundering scandal captivated audiences in Malta and the world. The self-professed fortune teller was embroiled in a gambling-related scandal that eventually caught up to her. In this guide, we’ve explained the full story, from Sultana’s crimes to her charges.

Judge’s gavel in court

An Overview

To best explain this story, we’ve started from the very beginning of the story, with a brief explanation of Maria Magdalena Sultana. We’ve then taken a deep dive into her crimes, and covered the many juicy details that were revealed over the course of her court case.

We’ve then covered the judge’s verdict, which saw Sultana penalized with huge fines and a suspended sentence, before looking at the issue of money laundering in Malta and why authorities take it so seriously. You can jump to each section with the buttons below or keep scrolling to learn all the wild details of this story.

Who is Maria Magdalena Sultana?

Before Maria Magdalena Sultana’s crimes were made public, she was a relatively unknown member of the public. For years, Sultana had claimed to work as a psychic and fortune teller in Malta, where the best Maltese casino sites but in time, things seemed to be a bit murkier than she was letting on. Authorities soon discovered that she’d been committing a string of crimes.

The Crimes

Between 2009 and 2020, Sultana claimed that she had been earning her income as a psychic. She had advertised her services through Facebook for between €20 to €35 per session, though she was still receiving unemployment benefits from the state. Officially, she hadn’t been employed since 2008.

However, a tip to the authorities led to an investigation into her income. Police eventually found that Sultana had been spending considerable money on gambling trips in Malta and maybe playing at the best Maltese casino sites. In fact, it is estimated that over the 11 years, Sultana had spent around €200,000 on casino trips.

It was found that Sultana had been using the casino trips to launder the cash that she made from reading her client’s fortunes. When she was arrested, police confiscated roughly €4,000 in cash, and it was found that she had not been paying her taxes.

A search of her home found a large amount of paraphernalia related to her fortune-telling, including incense boxes, bundles of fortune-telling cards, and an Ouija board. There were no receipts that proved she had been recording her business ventures at all.

The Court Case

When put on trial, Sultana pleaded not guilty to the money laundering crimes. At the time, her assets had been frozen, which saw the defence argue that Sultana would be unable to live. Because of Malta’s money laundering laws, Sultana’s assets remained frozen until the end of court proceedings.

On the stand, she wept and begged for the government not to take her home, saying, “I have nothing!” The court case soon found that Sultana had likely bought her home with funds generated from criminal activity. Prior to being charged, Sultana was already in hot water with the authorities.

She was under two suspended prison sentences, two probation orders, was serving two sentences released on condition, and under a decree where she was released from arrest. Her charges for the current crime were plentiful and included tax fraud and money laundering.

Throughout the case, a number of people testified that Sultana had given them fortune readings, would perform magic, or put curses on others. Her lawyers decried the prosecution as a witch hunt, which didn’t do much to garner sympathy for the accused.

The Verdict

At the conclusion of the trial, Sultana was handed a two year suspended sentence and fined €28,000. She was found guilty of fraud, money laundering, and of failing to declare her income. She was found to have profited through scams and making false declarations to the Tax Commissioner. All these deeds are far away from what responsible gambling should be.

In addition to the fortune-telling income, she earned €56,000 in state benefits from the Department of Social Services between 2008 and 2021. The Magistrate chastised Sultana, saying that she had been exploiting the vulnerability of people for her own benefit. Additionally, Sultana’s property and the €4,000 in cash were confiscated.

Money Laundering in Malta

In recent years, the Maltese government has been cracking down on money laundering, especially with the use of the country’s huge gambling sector. In 2021, Malta was put on notice by the global Financial Action Task Force (FATF) for failing to adequately address the issue, which led to a series of reforms.

Among its many areas of concern, the FATF said that Malta had been failing to recognize shell companies and had not been adequately sharing its data with local and international enforcement agencies. It was put on the FATF’s grey list but removed one year later due to its major improvements in addressing the issue.

The Malta Gaming Authority has also been rocked by several scandals relating to money laundering, with several high-ranking employees charged with various corruption charges. With gambling being a major part of the Maltese economy, it has made it a prime target for criminal groups looking to use the market to launder cash.

Frequently Asked Questions

If you still have questions about the Maria Magdalena Sultana case, keep reading. Below, we have provided responses to some commonly asked questions about this topic so that you don’t have to read the whole article. If you’re looking for more detailed answers, use the links in each to jump up to the relevant sections.

1️⃣ Who is Maria Magdalena Sultana?

The subject of this story, Maria Magdalena Sultana is a Maltese woman who was embroiled in a money laundering scandal. After being registered as unemployed for 11 years and earning cash as a fortune teller, it was discovered that she had spent hundreds of thousands of euros on casino visits.

2️⃣ What crimes did Maria Magdalena Sultana commit?

After a tip to police, investigators uncovered a string of crimes relating to Sultana’s business practices. It was found that she had been using regular casino trips to launder her earnings from the fortune-telling business and had failed to register her earnings with the local tax departments.

3️⃣ What was revealed in the court case?

Several fascinating crime details were revealed during Sultana’s court case. Despite pleading not guilty to the crimes, several people testified to employing her services for fortune telling and magic. She had never issued receipts for the services. Over 11 years, she had also earned €56,000 in state benefits. She was also serving numerous suspended sentences for other crimes.

4️⃣ What was the verdict of the court case?

Sultana was guilty of the charges of money laundering, fraud, and failing to declare her income with the tax department and that was the verdict that was issued. She was handed a two-month suspended sentence and issued a fine of €28,000. Some of her property and €4,000 in cash were also confiscated.

5️⃣ Is money laundering a serious issue in Malta?

In Malta, money laundering has been highlighted as being a major issue. It is targeted often due to its thriving gambling sector. In recent years, a lot of attention has been on the island due to serious corruption charges against high-ranking MGA employees.