Indonesian Stock Exchange has suspended Sarijaya

Jakarta: Widely criticized for the inefficient use of monitoring, the capital has become entangled in a series of allegations of fraud committed by one of the largest securities houses - PT Sarijaya Permana Sekuritas.

The capital market supervisory announced the company owner, Herman Ramli, was involved in an alleged embezzlement involving investors money worth 245 billion Rupiah (22.5 million U.S. dollars) in financial 8700, which in 6500 held by private investors.

"There was an alleged abuse of customer accounts by President Sarijaya Commissioner (Herman Ramli)," said the capital market and control of financial institutions Agency (Bapepam-LK), in a statement Tuesday.

At the request of Bapepam, Indonesia Stock Exchange (idx) has suspended the activities Sarijaya Tuesday and called PT kliring Penjaminan Efek Indonesia and the central depository Kustodian PT Sentral Efek Indonesia freezing all assets of the agency and its clients.

In his statement said Sarijaya Bapepam has falsefied reports its net working capital adjustment.

Head of the National Police detectives Comr. Gen. Susno Duadji said, police arrested Herman December 24 on charges of fraud.

Bapepam also the customer to verify the accounts and assets have already been made by Herman Sarijaya to ensure its operation.

"If there are no problems, we will release as soon as possible," idx President Erry Firmansyah said.

Erry also said that the suspension of all activities Sarijaya was not because the authorities wanted to prevent panic on the trading floor as Sarijaya was one of the largest securities houses in the nation.

Sarijaya which has 31 branches in Java, Bali, Sumatra, Kalimantan and Sulawesi, has waived the assets in the form of equity, a multi-financial companies, an insurance company and a plastics factory to authorities, Erry said.

Zulfian Alamsyah director of the company stated that the case is not Herman. "We are now looking for new investors to the problem immediately as requested by the authorities," he said.

Sarijaya The case is the latest in a series of fraud cases involving brokers. PT Antaboga Delta Sekuritas was in an alleged scam Rp 1.4 trillion in value, thus questioning the role of Bapepam supervision. Bapepam is investigating 49 other securities houses by irregularities.