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JAKARTA: An Indonesian bribery court sentenced businessman Benny Tjokrosaputro to life in prison for a stock manipulation scheme that helped trigger losses of more than $ 1 billion at state insurer Asuransi Jiwasraya, state-run Antara news agency said.
Three of the insurer’s executives were among five other defendants sentenced to life in prison in one of Indonesia’s largest corruption trials by a special corruption court in Jakarta, the capital.
Tjokrosaputro, who had made international headlines with a $ 1 billion lawsuit he once filed against Goldman Sachs, was ordered to pay a 6 trillion rupee ($ 410 million) compensation at his sentencing on Monday, he added. the agency.
The court found Tjokrosaputro, chief commissioner of real estate developer Hanson International, guilty of corruption and money laundering by conspiring with other investors to inflate the shares of Indonesia’s main stock market.
He made arrangements with Jiwasraya executives to invest in stocks and then used the proceeds to buy foreign properties and currencies, the agency said, citing court documents.
The businessman had used his knowledge to “tarnish the reputation of the capital market and erode public confidence in it,” Antara quoted Judge Rosmina, who uses a single name.
Tjokrosaputro could not be reached for comment.
In a statement, his lawyer, Muchtar Arifin, dismissed as unfounded the allegation that his client had controlled the prices of shares owned by others, adding that the businessman planned to appeal.
Bad investments led Jiwasraya to default on more than 10,000 bancassurance policies in 2018 and the government has yet to resolve part of the outstanding debt with policyholders.
The case led to estimated state losses of 16.81 trillion rupees ($ 1.15 billion), government auditors said.
Tjokrosaputro, who was ranked 43rd in Forbes business magazine’s list of 50 richest people in Indonesia in 2018, filed a lawsuit against Goldman in 2016 for ownership of shares in Hanson International.
While he won the case in the lower courts, Goldman won an appeal in the Supreme Court last year.
Hanson International, which filed for bankruptcy Aug. 12, according to a stock exchange filing, did not immediately respond to an emailed request for comment.
