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Phony bond sales by ex-Reliance agent cause billions in losses
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Brokerage firm Reliance Securities, an office of which is pictured, has called on victims of the fictitious selling of government bonds in its name to sue to the responsible broker, EP Larasati. Losses have been estimated at Rp 5 billion. (kompas.com/Iwan Supriatna)
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eliance Securities has called on victims of the fictitious selling of FR0035 government bonds, which led to at least Rp 5 billion (US$375,000) in losses, to sue broker EP Larasati instead of the securities brokerage firm.
The case came to light after investors complained about failing to receive returns on their investment in SUN FR0035. They claimed to have bought bonds through Reliance Securities’ head of wealth management, EP Larasati, in 2014 and 2015.
"Larasati has not worked for Reliance Securities since April 2014 and therefore bears responsibility. Reliance has reported Larasati to the police, and those who suffered losses as a result of her actions should contact her directly," said Reliance Securities lawyer Andi Simangunsong on Monday in Jakarta.
The case emerged in March when Reliance client Herry P. Maulana had trouble cashing in his bond worth Rp 2 billion.
Another client, Budi Tri Hariyanto, complained by letter to the Financial Service Authority (OJK) on April 27 that he had yet to be able to cash in his bond worth Rp 1.3 billion. Their investment should have matured as they bought the SUN FR0035 in March 2015.
On May 4, Alwi Sutanto had failed to obtain his Rp 1.9 billion investment in SUN FR0035 since December 2014. He admitted that he had transferred money not to Reliance Securities’ official bank account but had invested through PT Magnus Capital.
Andi insisted that his client, Reliance Securities, did not sell FR0035 to the victims and that Magnus Capital was not a partner.
"The product sold by Larasati was not a Reliance product and was not listed as a product sold by Reliance Securities on the OJK list. Reliance Securities also stated that it was not connected to, nor had appointed PT Magnus Capital to receive the funds on its behalf," Andi said. (ags)
