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Police arrest three for 'swindling hundreds' in property scam
The alleged property fraud dates back to 2016 and involved elaborate promotional schemes to lure potential buyers for the Ciputat Resort Apartment – which does not physically exist.
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The Jakarta Police have arrested three relatives who allegedly defrauded at least 455 people of around Rp 30 billion (US$2.1 million) through the fictitious PT MMS (Megakarya) property developer. The elaborate scheme promoted the Ciputat Resort Apartment does not physically exist. (Shutterstock/File)
O
fficers of the Jakarta Police's general crimes unit have arrested three members of a family that ran a property scam that allegedly swindled Rp 30 billion (US$2.1 million) from at least 455 people.
The police arrested the three individuals on July 7 in South Tangerang, Banten. Identified only as AS, KR and PJ, the three have been charged with violating articles 378 and 372 of the Criminal Code on embezzlement and fraud, which carry a maximum punishment of four years in prison.
Jakarta Police chief Insp. Gen. Gatot Eddy Pramono said that the suspects were believed to have swindled at least 455 people, of whom "only 26 had reported the crime" to the police, he said on Thursday at a press conference, according to a kompas.com report.
Gatot said the scam started in 2016, when AS, KR and PJ founded a property development company registered as PT MMS (Megakarya).
AS was the president director from 2016 to 2017, and later took over sales. KR was president director from 2017 to 2019, while PJ oversaw the entire scheme and collected payments from Megakarya's "customers".
The three produced a brochure on a bogus property development called Ciputat Resort Apartment, with each apartment unit priced at Rp 150 million.
Megakarya even offered promotional packages and prizes to lure potential buyers, including a sales promotion offering three apartment units for Rp 525 million. It also advertised promotional prizes including a car, motorcycles and precious metal.
