4. April 2007 Made Jati Reported at Polsek Kuta for Fraud at Kori Restaurant and Indication of Collusion at Poltabes

(Police Report No: LP/ 169/ IV/ 2007/ Polsek Kuta, dated 9 April 2007 with STPL/ 1447/ IV/ 2007/ Polsek)

The Initial Report:

Michael and Made Jati became business partners with Gary and Pamela Hewson in October 1997 and opened Kori Restaurant in June 1998. Michael and Made Jati owned the property and financed the project, Michael designed and built the restaurant, and Gary was the operating partner. All went smoothly until 2006 when Made Jati began demanding control of the restaurant from Gary. She now refered to him as an “employee” and she refused his requests for meetings.

In 2007, claiming to have no knowledge of the partnership agreement she had signed with Michael, Gary and Pamela in 1997, Made Jati seized control of Kori Restaurant after intimidating the staff with premen or thugs. She then filed a criminal report against Gary at the Denpasar police (Poltabes), claiming that his receipt of 50% of the profits from 1998 through 2007 was Embezzlement because he was only an employee rather than a partner.

Gary reported Made Jati at Polsek Kuta for suspected Fraud. Gary had the original partnership agreement and many other documents detailing the partnership, including many signed receipts from Made Jati acknowledging his “50% profit share” since 1998.

Examining the original founding documents for the corporation, it also appeared highly likely that the documents were fraudulent and falsely dated, and it suggested that Made Jati had planned a fraud from the very beginning of the partnership.

Investigators at Polsek Kuta interviewed five witnesses in the case.

Later Developments:

There were no later developments. Polsek Kuta dropped the case with the explanation "not enough evidence", but without proper documentation of their reasoning. No serious investigation took place.

Although Polsek Kuta halted their investigation, Poltabes continued to summon Gary for interviews. In a separate case at Poltabes, Made Jati also reported Gary's manager at Kori for Embezzlement but the investigators apparently told the manager that they would drop the charges against him if he would help them get Gary. Gary took the Poltabes investigations as warnings not to push his complaint at Polsek Kuta. Gary gave up fighting for his partnership and fled Bali.