Fed issues consent order against Riady<\/p>\n
WASHINGTON (Dow Jones): The Federal Reserve issued a consent
\norder Friday against BOT Corp. and Indonesian businessman James
\nRiady for their role in the acquisition of Lippo Bank of Los
\nAngeles.<\/p>\n
The Fed said BOT and Riady violated the Bank Holding Company
\nAct by purchasing more than a quarter of Lippo Bank's stock and
\nexercising a controlling influence over the bank's management and
\npolicies.<\/p>\n
Under the order, BOT, a Netherlands Antilles company, must
\ndivest at least 98 percent of its shares in Lippo, pay a $300,000
\ncivil penalty and turn over any profit from the sale of the bank.<\/p>\n
BOT and Riady, however, deny and dispute that BOT ever
\nacquired shares in Lippo, or had the power to exercise influence
\nover the bank. Still, BOT consented to the Fed's order without
\nadmitting to any allegations.<\/p>\n
The connection of Riady, a member of the ethnic Chinese family
\nthat controls Indonesia's Lippo Group, to BOT was not clear in
\nthe Fed's order. A Fed spokesman said Riady \"owns some shares of
\nBOT\"<\/p>\n
James Per Lee, a spokesman for Lippo Bank, said Riady owns 99
\npercent Lippo Bank's shares. He said the bank has been for sale
\nsince last year and \"is very close to being sold.\"<\/p>\n
Riady has been linked with illegal foreign contributions to
\nthe U.S. Democratic Party. According to reports, former Commerce
\nDepartment fundraiser and Lippo official John Huang collected
\nmore than $2 million in illegal donations for the party.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/fed-issues-consent-order-against-riady-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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