International Development Bank Lending Fraud – Indonesia
A development bank whose mission is the encourage commerce between the U.S. and Indonesia was defrauded by one of its customers in connection with a $5 million loan which was subsequently defaulted on. The borrower was involved in the importation and sale of a commodity which was then sold through U.S. based distributors. The investigation revealed that the founder and chief executive of the company in default had established an alter ego business in a neighboring state under a different name but had continued to sell to the same customers he had identified to the bank in his loan application. This finding enabled the bank to place liens against the receivables and inventory of this newly established venture and ultimately recover the full amount of them money judgement against the borrower.