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Fraud Trial for German Hotelier in North Bali

Court Allows Karl Gunther Meyer ‘City Arrest’ While Trial for Business Fraud in Singaraja, North Bali Trial Continues


Bali News: Fraud Trial for German Hotelier in North Bali
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(4/6/2012)

Bali Post reports that, after several postponements in the court proceedings, the trial for fraud and malfeasance in the purchase and sale of shares involving the former owner of the Melka Lovina Hotel, has resumed for Karl Gunther Meyer on Monday, April 2, 2012 in the Singaraja District Court, North Bali.

Meyer is being charged with violation of the Criminal Code carrying penalties of four years imprisonment.

In the latest court session, the panel of judges, led by Made Ngurah Atmaja, decided to release the German defendant from his incarceration, changing his status to city arrest. The change in jail status was granted after a request was filed by the defendant’s lawyer citing the German’s poor state of health and his need to receive regular medical attention.

Meyer was brought to court after being reported by a Danish business associate, Michael Brag, to the Bali police in January 2010. Karl Meyer developed the well known north Bali hotel and subsequently offered shares to Brag. Brag took up the invitation, purchasing 25% of the company’s shares.

At one point in the transaction it is alleged that Meyer changed the articles of incorporation for the company failing to list Brag’s shareholding and reportedly sold PT Bali Melka to a third party, an act allegedly causing hus Danis business partner a loss of Rp. 9 billion (US$1 million).

Related Article

[Expat Hotel Owner Jailed in Singaraja]
 


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