Trader charged with fraud

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)