Sia pleads guilty to bankruptcy and wire fraud

By Frank Cho
Advertiser Staff Writer

Sukamto Sia, former developer and Bank of Honolulu chairman, pleaded guilty to bankruptcy and wire fraud charges yesterday as part of an agreement with federal prosecutors to dismiss 18 other felony charges and end nearly three years of legal wrangling.

Sukamto Sia faces up to 40 months in prison when he is sentenced March 11. Advertiser library photo

In return for Sia's guilty plea, the U.S. attorney's office has agreed to drop 18 other counts including charges of bankruptcy fraud and money laundering against Sia's mistress, Kelly Randall, and Sia's brother, Sumitro.

"I have always taken responsibility for my actions, whether they be successes or failures, and I do so again with this plea agreement," Sia said yesterday.

Sia filed for bankruptcy protection Nov. 6, 1998, after he was arrested in Las Vegas on bad check charges. He resigned as chairman of the Bank of Honolulu, which later failed. The Las Vegas charges were later dismissed.

In the bankruptcy filing, Sia listed nearly $300 million in debts and just $9 million in assets, mostly in real estate. He was arrested again in Honolulu Aug. 30 on charges of bankruptcy fraud and has been living in Los Angeles under supervised release as he undergoes medical treatment for a thyroid problem.

"I think that we believe that this is the most appropriate disposition of the case," said Elliot Enoki, U.S. Attorney for the District of Hawai'i.

As part of the plea agreement, Sia admitted in court yesterday that he participated in a scheme to defraud the failed Bank of Honolulu by obtaining illegal loans that went to Sia or companies he controlled. The Bank of Honolulu was seized by the Federal Deposit Insurance Corp. in October 2000.

In 1997, Bank of Honolulu made a $1.5 million loan in the name of a borrower who had no knowledge of the loan, according to court records. Sia had the bank wire the money to a Hong Kong bank account that he controlled.

He also admitted cashing two state tax refund checks that were supposed to be turned over to the bankruptcy trustee for his estate. In 1999, Sia deposited a $288,910.64 refund check into his account at a California bank. He then used some of that money at Las Vegas casinos. In April 2000, Sia deposited the second refund check of $468,338.46 in the California bank account. He used some of that money to purchase diamond earrings for Randall, according to court records.

Sia agreed to make $1.3 million in restitution to the FDIC and more than $700,000 to the the bankruptcy trustee administering his estate.

Judge David Ezra must review the plea agreement. A decision could take weeks or months, some court observers said.

William McCorriston, Sia's Honolulu attorney, said he will seek to have Sia's minimum sentence lowered below the 20-month minimum listed in the plea agreement. Sia could receive credit for time served before he was put into a supervised release program and prison officials could further reduce his sentence for good behavior.

The federal Bureau of Prisons will likely determine where Sia will serve his sentence, but federal officials said it will likely be in a minimum-security facility.

Steve Jones, a Honolulu attorney representing Sia's bankrupt estate, said the conviction should make the bankruptcy case move quicker once the former banker is sentenced. The case had slowed to a crawl in recent months as Sia stopped cooperating with the bankruptcy court pending the criminal charges.

Sia said he still plans to repay his debts after his prison term. "I hope to return to my career and I plan to continue repaying my creditors," he said.

Ezra said it was "highly" likely that Sia, who is not a U.S. citizen, would be deported when released because of his felony record.

Federal investigators said indictments against Sia's other brother, Suwardi, and business associates Khee Pow Yong and Johannes Sjah are still in effect. Except for Sia and Randall, none of the other defendants have responded to their indictments.