ex-Citi mgr embazzled $5 mn, court told

Jakarta: A former Citibank relationship manager was charged with embezzling more than $5 million of her clients' money, a Jakarta court heard on Tuesday, in a sports-car fuelled case that has shaken up the wealth management business in Indonesia.

Inong Malinda Dee, 49, ordered 117 transfers each worth up to 2 billion rupiah ($223,000) from her Citigold clients' accounts to her or acquaintances' accounts between 2007 and 2011 for purchases including Ferrari, Porsche, Mercedes and Hummer cars, as well as apartments and houses, prosecutors said.

Dee, who was charged with giving false banking transaction data and money laundering, faces a maximum penalty of 15 years in jail, said prosecutor Tatang Surtana.

Citi, hit by a year-long ban in May on its wealth management business in Indonesia over the alleged embezzlement, has said a former employee committed fraud. It appointed a new country head for Indonesia in June after a central bank investigation.

The defendant transferred 130 million rupiah to Bank Central Asia and in the message field she put Mercy. She then used the funds to (make) ... a downpayment for a white Mercedes-Benz, said one of the prosecutors.

A teary-eyed Dee, who wore a black headscarf and pink stiletto heels, drew a large crowd trying to take pictures in the packed courtroom.

Her case has gripped a country that is creating millionaires faster than any other Asian nation, according to Julius Baer . Pictures of her surgery-enhanced figure, luxury cars and a young actor partner have been splashed across media.

Citi, the third-largest U.S. bank by assets, ordered an internal investigation after one of its wealthy clients noticed unauthorized transfers and reported them. Dee was arrested by police in March.

The case led the central bank to launch an investigation into banks' risk management systems and suspend some of the privileges that relationship managers can give wealthy clients, in a signal authorities wanted to get tough on fraud in the banking system of southeast Asia's biggest economy.

The central bank, also the banking regulator, said last week it would tighten regulations for the issuance of credit cards.

The trial continues next week. ($1 = 8955 Rupiah)

Source: Financial Express