Fed issues consent order against Riady

Fed issues consent order against Riady

WASHINGTON (Dow Jones): The Federal Reserve issued a consent
order Friday against BOT Corp. and Indonesian businessman James
Riady for their role in the acquisition of Lippo Bank of Los
Angeles.

The Fed said BOT and Riady violated the Bank Holding Company
Act by purchasing more than a quarter of Lippo Bank's stock and
exercising a controlling influence over the bank's management and
policies.

Under the order, BOT, a Netherlands Antilles company, must
divest at least 98 percent of its shares in Lippo, pay a $300,000
civil penalty and turn over any profit from the sale of the bank.

BOT and Riady, however, deny and dispute that BOT ever
acquired shares in Lippo, or had the power to exercise influence
over the bank. Still, BOT consented to the Fed's order without
admitting to any allegations.

The connection of Riady, a member of the ethnic Chinese family
that controls Indonesia's Lippo Group, to BOT was not clear in
the Fed's order. A Fed spokesman said Riady "owns some shares of
BOT"

James Per Lee, a spokesman for Lippo Bank, said Riady owns 99
percent Lippo Bank's shares. He said the bank has been for sale
since last year and "is very close to being sold."

Riady has been linked with illegal foreign contributions to
the U.S. Democratic Party. According to reports, former Commerce
Department fundraiser and Lippo official John Huang collected
more than $2 million in illegal donations for the party.