Sia sentenced to three years in prison on bankruptcy fraud

Sia sentenced to three years in prison on bankruptcy fraud

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.