Indonesian banker sentenced to three years in the U.S.

Indonesian banker sentenced to three years in the U.S.

Jaymes Song, Associated Press, Honolulu, Hawaii

A federal judge on Friday sentenced former Honolulu banker and Indonesian businessman Sukamto Sia to three years in prison on bankruptcy and wire fraud charges.

U.S. District Judge David Ezra did not impose any fines and accepted a plea agreement reached last October. The maximum sentence Sia faced was three years and four months in prison and up to US$1.5 million in fines.

"What he did was not small, what he did was huge," said Ezra, who also sentenced Sia to five years of supervised released following incarceration.

The judge said Sia used the now-defunct Bank of Honolulu as his "own private piggy bank." Sia, 43, served as chairman of the now-defunct bank, which federal regulators closed in 2000.

"He didn't walk through the door with a gun and rob the bank, but the effect was the same," Ezra said. "There are only a few bank robbers that walk out with millions of dollars."

Sia admitted he defrauded the bank by obtaining large loans for his own benefit. He also admitted that during bankruptcy proceedings he concealed two state income tax refund checks totaling more than $700,000.

Sia will serve his prison time at the Federal Correctional Institution in Taft, California, as requested by his attorneys. He may be deported to his native Indonesia when he released.

Sia, who addressed Ezra before his sentence was issued, asked to be released from prison so he can return to work to repay his debts.

Sia, whose net worth was estimated by his attorneys to be $800 million at the peak, said his troubles happened when the Asian stock markets crashed.

"I was at a low point and took the wrong path," he said.

Defense attorneys noted that Sia has already paid about $2.05 million in restitution to the Federal Deposit Insurance Corp. and bankruptcy trustees. He still owes about $1.06 million.

They said the payment demonstrated Sia was truly remorseful for his actions.

"With a guy like Mr. Sia's background, it's understandable that he's devastated by this," attorney William McCorriston said. "He wants to be a productive member of society. He wants to pay the creditors. This is going to be very difficult for him to do that."

McCorriston did not say whether he will file an appeal.

Prosecutors continuously mentioned the "lavish lifestyle" Sia continued to live even after filing for bankruptcy, alleging that he had hidden assets. Some of the luxuries included living in a $4.2 million home in the Bel Air section of Los Angeles, driving a $250,000 Bentley and purchasing $325,000 diamond earrings for his girlfriend.

In Sia's bankruptcy filing, he listed $294 million in debts owed to 23 creditors.

Sia, who showed little emotion when his sentence was announced, kissed and hugged his girlfriend, Kelly Randall, and waved to friends before federal marshals escorted him out of the courtroom.

In Sia's plea agreement, 18 other felony counts were dropped. Criminal charges were also dropped against Randall and Sia's brother, Sumitro Sukamto.