Bank employee, housewife arrested in Rp 1.5b scam

Bank employee, housewife arrested in Rp 1.5b scam

JAKARTA (JP): A state-owned bank in Central Jakarta was hit by
bogus transfer orders with a combined value of Rp 1.5 billion
(US$612,244) issued between 1993 and 1995, a police officer said
yesterday.

A bank employee and a housewife allegedly involved in the
scam, identified respectively as IL and MR, were being detained
by police, City Police spokesman Lt. Col. E. Aritonang said.

He declined to name the bank in fear of ruining its
credibility.

"IL made the orders look as though two banks in London,
England, transferred money to the bank, where he works in the
transfer division," Aritonang said.

He said the two made away with the money through at least 10
transfer orders from the state bank to four other banks in
Jakarta.

"He then transferred some of the bogus money to different
accounts at three of its branches and another state bank. The
money was then cashed later by MR," he said.

Chief detective of economic affairs Lt. Col. Saud Usman
Nasution said yesterday that IL was arrested Tuesday at the
bank's office on Jl. Imam Bonjol, Central Jakarta, while MR was
arrested earlier in June at her house in Duren Tiga, South
Jakarta.

Both IL and MR took 60 percent and 40 percent of the money,
respectively. A part of the money was kept in American dollars
and British pounds, Nasution said.

He said that based on the suspects' confession, MR's duty was
to locate people who were willing to receive IL's remittances to
their accounts at three bank branches on Jl. Rasuna Said, Jl.
Falatehan and Jl. Soepomo, all in South Jakarta.

"IL also addressed some transfers to MR's private account at
another state bank on Jl. Gatot Subroto, Central Jakarta,"
Nasution said.

He said it was simple for IL to authorize the transfers as he
was just one of a few employees who knew the transfer codes and
passwords to all bank divisions.

"IL was moved from the bank's transfer division to the general
affairs division in late 1994, where he continued making bogus
transfer orders until December 1995," he said.

IL was transferred by the bank's management for an
investigation because they realized their bank had been robbed.

But the management, who was suspicious of IL's activities, did
not take stern action against IL because no evidence was found,
Nasution said.

The management also refrained from immediately reporting their
findings to police because they were afraid the scam would hurt
the bank's credibility, he said.

"So far, IL said that he was the only person at the bank who
was involved in the scam," he said.

Nasution said police found it difficult to obtain information
about IL from MR, who was arrested a month before police detained
IL.

Later, MR confessed that her child, boyfriend and a friend
were also involved in the scam by helping her collect the cash
and deliver 60 percent of the money to IL, Nasution said.

He said the suspects confessed they used the money to support
their family lives.

"Police are still investigating whether MR's Scottish husband
was involved in the scam from overseas," Nasution said. (cst)