Posted on: Thursday, May 17, 2001

Sia reindicted, charged with bank fraud

By Frank Cho
Advertiser Staff Writer

The ongoing investigation into bankrupt financier Sukamto Sia's dealings took another twist yesterday when a federal grand jury reindicted the Indonesian businessman, adding bank fraud to charges of conspiracy and money laundering.

The 22-count indictment also included charges against Sia's girlfriend, two brothers and two business associates.

Attorneys for Sia, who is in Los Angeles undergoing medical treatment, denied the charges.

"Sukamto Sia strongly disputes the allegations contained in the second superseding indictment. Mr. Sia looks forward to defending himself against these unfounded allegations at trial where there will be an opportunity to rebut the government's allegations," said Sia attorney David Minkin.

This is the third time that the former Honolulu developer and chairman of the failed Bank of Honolulu has been indicted since being arrested in August.

The new indictment contains the most serious charges yet against Sia and could mean many more years in prison if he is convicted.

Bank fraud can carry up to 30 years in prison and a $1 million fine for each count.

While the new charges were not unexpected, they come less than a week before Sia was to be tried on an earlier indictment for bankruptcy fraud and money laundering charges related to his November 1998 bankruptcy filing.

Minkin said the court now must decide whether to delay that trial.

The latest indictment adds 13 counts, 12 of which name Sia. These counts are in addition to the original nine bankruptcy fraud and money laundering charges already against Sia.

Yesterday's indictment also named Sia's brothers, Suwardi, 35, and Sumitro Sukamto, 37; associates Khee Pow Yong, 33, and Johannes Sjah, 51; and Kelly Randall, 33.

Randall is in Los Angeles. Sjah is in Indonesia and the rest of the defendants are in Singapore.

The government is accusing them of helping Sia hide money from the bankruptcy court and creditors.

Whether Sia could still face more charges was unclear yesterday.

"(The indictment) certainly addresses all the issues to this point," said Omer Poirier, assistant U.S. attorney.

The latest indictment accuses Sia, a former chairman of the failed Bank of Honolulu and once its single-biggest shareholder, of defrauding the bank of $6 million in loans.

The four bank fraud charges allege Sia received loans under false names and transferred them to accounts he controlled.

The government is asking that Sia be forced to forfeit a $4.6 million home in Bel Air, Calif.; a $1.48 million home owned by Randall in Los Angeles; and a 2000 Bentley purchased for $197,600.

Frank Cho can be reached at 525-8088 or by e-mail at fcho@honoluluadvertiser.com