Illegal bank rakes in Rp 37.5b

BANDUNG: The police have arrested a man and his wife and 38 of their accomplices on charges of running an illegal bank which accumulated Rp 37.5 billion (US$16 million) from customers.

Lt. Col. Mahbul Padmanegara said the illegal savings bank, which the authorities closed down last month, was owned by 36- year-old Her and his wife Em, 32.

The couple has paid back Rp 17 billion to customers since the bank was closed down. The remaining Rp 20.5 billion is unaccounted for, Mahbul said.

The bank had 2,026 customers when it was closed down mid- September, Antara reported yesterday.

Customers were lured by the 20 percent monthly interest rate offered by the bank, Mahbul said. "They reported the bank's activities after the managers failed to keep their promise," he said. (pan)