Wednesday, November 16, 2011

Ex-Citibank Manager on Trial for Fraud

An former senior executive of Citibank Indonesia went on trial this week for bank fraud and allegedly embezzling US$5 million from customers’ accounts, crimes which carry a 15-year jail term.

Inong Malinda Dee, 49, allegedly embezzled the money from wealthy customers’ savings accounts between 2007 and February this year when she was a premium client manager at the bank.

“The defendant has proceeded with transfers of money from customers’ savings without their consent at least 117 times,” prosecutor Tatang Sutarna told South Jakarta District Court.

Dee, who was dismissed from her post in June, also allegedly laundered the stolen money through other bank accounts to try to cover her tracks, he said.

“The defendant could be jailed up to 15 years jail if proven guilty of violation of bank procedures and money laundering,” the prosecutor added.

In May the central bank temporarily barred Citibank from opening new branches or issuing new credit cards due to the alleged misconduct in the local subsidiary of the US lender.

The trial will resume next week.

Filed under: The Nation

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