Resto owner nabbed in bank fraud
Resto owner nabbed in bank fraud
Eva C. Komandjaja, The Jakarta Post, Jakarta
The police unveiled on Tuesday they were investigating another
crime in the country's fragile banking sector, this time
involving the issuance of fake Lippo Bank promissory notes worth
Rp 50 billion (US$5.4 million).
Head of National Police fraud squad Brig. Gen. Andi Chaeruddin
said the police had arrested pizza restaurant owner Herry Robert
last Friday as a suspect in distributing 30 false promissory
notes to the bank's customers.
"Our investigation is based around Article 378 on fraud in the
Criminal Code," Andi said.
The case highlights how banking crime in the industry, which
has yet to fully recover from the devastating impact of the late
1990s financial crisis, remains rampant amid criticism of weak
banking supervision and slow progress in the investigation of
past banking crimes.
According to the police Herry, who owns three pizza
restaurants in Bali, Bandung and Jakarta, applied for a Rp 30
billion loan at Lippo Bank in Kebumen, Central Java, in mid 2004.
Herry chose the branch because he was close to a former branch
manager named Anastasia.
Herry apparently made a deal with some bank officers to
distribute the false notes in return for having his loan
application approved. His loan was approved and he received Rp 31
billion from the bank. He has repaid Rp 9 billion, according to
the police.
The police have no other suspects in the case.
"We're still investigating who is actually the mastermind
behind this fraud case. We still have to examine evidence and
question him (Herry) in order to obtain a clearer picture. It is
very likely that we will name more suspects soon," Andi said.
Anastasia, who reported the crime to the police, has not been
arrested.
"We shouldn't rush into making a conclusion whether she is a
suspect or not," Andi said.
Meanwhile, Herry's lawyer Haposan Hutagalung said his client
knew nothing about the false notes as he only borrowed money from
the bank to finance his business.
"Herry was only borrowing money, nothing else. He has even
repaid Rp 9 billion of the loan so far. If he had intended to
commit fraud, he wouldn't have repaid the loan, along with
interest, would he?" Hutagalung told The Jakarta Post.
He added that the police should have arrested Kebumen's branch
officers instead of his client.
"My client does not know whether the money he borrowed was
from illegal activities or not. Besides, it's the bank officers
who had the authority to determine whether my client got his loan
or not, right?" Hutagalung said.
He regretted the police's decision to arrest his client even
though his role in the fraud case had not been determined.
"The police should clarify whether my client is suspected as
the mastermind or the distributor or whatever violation, instead
of arresting him just like that," Hutagalung said.
He added that he had submitted relevant documents to the
police as evidence, such as bank transfers from his client to
Lippo Bank Kebumen branch for repayment of the loan.