Fraud charges against Maurice Gabay, the former financial controller of the Canadian company Magil Construction Company Ltd., have been dropped.

No order was made last month when Gabay appeared in the Corporate Area Resident Magistrate's Court.

Attorney-at-law Patrick Bailey, who represented Gabay, applied for his client to be freed of the charges because Gabay, who is a Canadian, had made several appearances in court and the Crown had not been able to proceed with the trial.

Mr. Bailey said the main prosecution witness was living abroad and was not attending court.

Arrested in April

Gabay was arrested in April last year following reports made to the police that on December 10, 2004, he allegedly cashed a cheque for $3 million by forging the signature of Joseph Gustadat, a Canadian who was the owner of the construction company.

It was further alleged that Gabay ordered $600,000 worth of building material from several businesses and diverted them to a building site which was not connected with his employer's company.

The irregularities were discovered by the company which called in the Fraud Squad, and Gabay was arrested and charged with attempting to obtain, uttering a false document, larceny as a servant and forgery.