PDIC files 3rd case vs Delos Angeles, et al

MANILA, Philippines – The Philippine Deposit Insurance Corp. (PDIC), the state-owned deposit insurer, filed its third syndicated estafa case against Celso delos Angeles and 16 other officials of the closed Rural Bank of Bais in Negros Oriental.

The complaint, filed with the Department of Justice, stated that Delos Angeles and his partners siphoned P29.6 million from the bank through fraudulent transactions.

These funds were generated from depositors through aggressive deposit solicitation. The Rural Bank of Bais is part of the Legacy Group which is now under PDIC receivership.

The criminal case emanated from the creation of 2,749 fictitious motorcycle loans from February to September 2007 that aggregated to about P151.92 million, net proceeds of which amounting to P140.2 million were deposited to the savings account of Legacy Motors, Inc. (LMI) in the rural bank. LMI is owned by delos Angeles. 

According to PDIC, 2,741 loans were not supported by documents. Furthermore, the state deposit insurer found out that the amount of P29.6 million was withdrawn from the LMI account of which P27.176 million was deposited to the accounts of delos Angeles in other banks while P2.5 million allegedly went into the election fund of delos Angeles.

PDIC said in its complaint that the motorcycle loans were later erased from the books of the rural bank by making it appear that these were paid using the withdrawals from the account of Fusion Capital Corp., which is also owned by Delos Angeles.

The account of Fusion was later found to be funded by fictitious or simulated investment loans.

Among those charged were bank officials Alexis Petralba, Roy Hilario, Ariel Isberto, Agnes Santiago, Arnel Sulquiano, Jeanette Ortiz, Myrna Axalan, Carmencita Cedo, Rolando Labrador, Wilfredo Novo, Edgar Cando, Lidonna Gabayan, Cecil Ibgos, Wieshaun Ebacuado, Joylyn Tandoy and Leopoldo Regino.

PDIC president Jose Nograles said that PDIC continues to investigate the Legacy-affiliated banks to gather evidence for the filing of more cases.

He said that PDIC is currently investigating some 44 more cases involving fictitious loans and deposits of Legacy corporations aimed at siphoning off funds from the Legacy banks for the benefit of delos Angeles.