Trader charged with fraud

JAKARTA (JP): A prosecutor demanded a four-year sentence for a businessman accused of swindling his partners of Rp 1.9 billion.

Prosecutor Abdul Halim Tola told the Central Jakarta District Court yesterday that the defendant, Ignatius Budianto, had first asked three friends to apply for a bank loan to set up a financing company.

But he used the loan to pay off his debts, Tola said.

Tola said the defendant insisted his partners contribute some money to the company and sign a loan application for Rp 1.25 billion from private Bank Dagang Negara. The three company owners' signatures were required on the application.

"It turned out the defendant used Rp 1 billion without his partners knowledge to pay another company's debt in his name at Bank Perkembangan Asia," Tola said.

The prosecutor said the defendant only told his three partners about the debt after the new company, PT Cahaya Elusa Prima Jakarta, was open for business.

The defendant then coaxed his partners to join him in asking for another loan at the same bank, which he used to pay another debt. His partners reported Ignatius to the police when the bank seized the company's office because debts were overdue.

The trial was adjourned until next week. (12)