The Jakarta Post
The Surakarta Police have arrested a man for allegedly conducting a fraudulent investment scheme that caused more than Rp 111 billion (US$8.2 million) in total losses from clients in Surakarta, Central Java.
Sixty-year-old Yusak Heriyanto allegedly offered clients an interest rate of roughly 12 percent each week for gold bars they invested in.
Hundreds of people who reportedly wired between Rp 25 million (US$1,841) and Rp 100 million to Yusak's company because of the seemingly lucrative opportunity received interest only after the first month of their investment before the payments stopped.
"Some 108 people have filed reports with the police," said Surakarta Police chief Adj. Sr. Comr. Ribut Hari Wibowo on Tuesday.
According to the police, the suspect, who did not have gold bars to sell, later fled along with the clients' money before he was caught last week.
"The money was paid [by his clients], but the gold bars were never given [to them]," Ribut said.
The police have also named 12 other suspects in the case.
"We are currently tracking down the [whereabouts of] 12 other suspects," Ribut said. (vla/ipa)