Isle banker
seeks deal with
Vegas casinos
But Sukamto Sia's bankruptcy
Staff and wire reports
attorney worries that Nevada creditors
may have an unfair advantageA Honolulu attorney representing Indonesian businessman Sukamto Sia in his recently filed bankruptcy said a criminal case against Sia in Las Vegas could give Nevada creditors an unfair advantage in collecting their debts.
In a brief hearing today in a Nevada court, attorneys for Sia indicated they were working on a plan to repay $8 million in checks written to cover gambling debts at four Las Vegas casinos. The deal would eventually dismiss bad check charges against Sia, the controlling owner of Bank of Honolulu.
A judge set another court date of Dec. 10 to check on progress in the case.
"Nothing's concrete at this point but we're talking and we're close," said Deputy District Attorney Dan Ahlstrom. "Under the laws of the state he can get deferred prosecution so he can make some sort of repayment and the case will eventually be dismissed."
But attorney Jerrold Gubin, who filed Sia's Chapter 11 bankruptcy in Honolulu last week, said the Las Vegas casinos may be trying to collect their debts before the lengthy bankruptcy process works out a less-attractive repayment plan.
"They're essentially using the criminal process to collect a prepetition debt," Gubin said after learning of today's court action. "Some creditors would be more favored than others and may be paid in full as opposed to other creditors who have to stand in line in the bankruptcy process."
Las Vegas attorney David Chesnoff, representing Sia in the criminal case, could not be reached for comment.
Sia, 39, who formerly went under the name Sukarman Sukamto, last week resigned as board chairman of the Bank of Honolulu following his arrest in Las Vegas last month. He was charged with passing $8 million in insufficient checks to cover gambling debts at two casinos. Late last week, he filed for bankruptcy protection in Honolulu, listing $161 million in bank loan debts and $27 million in gambling debts.
Sia, a former Hawaii resident who now lives in Singapore, listed assets of between $10 million and $50 million in the Chapter 11 filing in U.S. Bankruptcy Court. According to the filing, Sia owes bank loans of $111 million in Singapore, $37 million in Indonesia, $10.5 million in Hong Kong and $3 million in Bangkok.
Sia also owes a total of $18 million to four Las Vegas casinos -- the Rio Hotel, Ceasars Palace, the Mirage Hotel and the Las Vegas Hilton -- as well as $9.6 million to casinos in London, Paris and Melbourne, Australia, the filing said.
Sia, who did not attend today's hearing, is free on $200,000 bail after pleading innocent to the Las Vegas charges. He is accused of passing five insufficient-fund checks totaling $6 million at the Rio Casino and two checks totaling $2 million at Caesars.
The Associated Press and Star-Bulletin reporter
Peter Wagner contributed to this report.
