Maltese pension fund Falcon Funds is facing a criminal investigation in Sweden after the Swedish Pensions Agency claimed it had been unable or unwilling to pay 2.4 billion Swedish Kroner (€247m) of savings to 22,000 investors.

According to Malta Today, the fund that was ejected from the Swedish private pensions system has asked the courts to block businessman Emir Ingmanson from disposing of a €1.6m Silema penthouse.

Documents given in court have suggested that the Bank of Valletta gave Ingmanson, a figure that has been associated with alleged fraudulent bankruptcies, a €1.4m loan on his property.

The businessman, who served as an introducer for Falcon Funds to the Swedish pensions authority, is now being sued by Falcon Funds.

The fund has said that its investment manager, Temple Asset Management, invested more than €10m in savers' cash in investment products owned by Ingmanson.

Falcon Funds is now looking to redeem millions of lost funds from an investment made by TAM with Ingmanson.

Falcon Funds has been deregistered from the Swedish pensions system and has to return all payments to members. Licensed by the Malta Financial Services Authority, it has already returned €67m in savings and is looking to carry out the total divestment to safeguard the value of pension savers' investments.

KPMG has been appointed by Malta's financial regulator to take control of the Maltese pension fund and to ensure members' protection. KPMG will also control all assets of Falcon Funds, reporting to the MFSA.

“This measure is being taken with specific reference to the scheme following an ongoing investigation on the scheme and the termination of the Investment Management Agreement between the scheme and Temple Asset Management Ltd, the former investment manager of the scheme. These measures will remain in place until such time as the MFSA directs otherwise,” the MFSA said.

Falcon Funds directors Tonio Fenech, Joseph Xuereb and Ian Zammit said in a statement: "In the circumstances the directors of the SICAV agree with the appointment of KPMG. The directors of the SICAV will assist KPMG in the execution of their mandate.”

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