The Directorate of Criminal Police has said local insurance-investment company PT Bali Consultan Life Insurance apparently owned assets valued at only about Rp10 billion (US$1.1 million) despite its having thousands of depositors who had invested an estimated Rp400 billion ($44.2 million).
Investigators seeking to find all assets of the company, known as Balicon, have already foreclosed on mortgages over seven houses in Negara, Jembrana and an eighth residence, a house in the Teras Ayung estate in East Denpasar valued at Rp3 billion ($330,000) and owned by company principal Paris Adnyana, who was arrested in November.
They have also seized seven vehicles and five motorbikes, blocked funds in seven bank accounts and seized other immovable assets. These total around Rp10 billion, according to Bali Police spokesman Gede Sugianyar.
Adnyana’s initial 40-day detention as a suspect ended on December 19, when police obtained authority to hold him for a further 40 days. Sugianyar said Adnyana was the only suspect in the case.
Prosecutor’s investigation files have already gone to the Denpasar District Court.
Sugianyar said this week police were still searching for Balicon assets and repeated earlier requests for anyone with information to come forward.
Balicon, which police say is an investment company under the guise of an insurance organisation, has more than 21,000 clients on its books. Its corporate headquarters are in Jembrana and has offices throughout Bali and in Surabaya and Jombang in East Java.
The case unfolded last month when dozens of customers visited a Balicon branch on Jl PB Sudirman, Denpasar, after they had been unable to access their funds and had not received their promised 5 percent net interest return for three months.
Adnyana could face up to 15 years’ jail under the Insurance Act No 2 of 1992.