PDIC files estafa vs De los Angeles, 7 other Legacy Group executives

MANILA, Philippines – State-run Philippine Deposit Insurance Corp. (PDIC) has filed before the Department of Justice two more charges of syndicated estafa against cancer-stricken Sto. Domingo, Albay Mayor Celso de los Angeles Jr. and seven officers of the controversial Legacy Group.

Also charged were Alexis Petralba, Roy Hilario, Rafael Rafanan Jr., Namnama Pasetes, Cecil Invencion, Mylen Banez, and Juan Labobo.

PDIC said De los Angeles and the officers of the Legacy banking group also siphoned the deposits of two of its banks – Rural Bank of Carmen in Cebu and Nation Bank in Negros Occidental – through “fraudulent” and “anomalous” transactions.

The complaint said De los Angeles and the accused created 30 false investment loans worth P136.7 million between December 2007 and February 2008, depositing the proceeds to the savings account of Fusion Capital Corp. (FCC) with the Rural Bank of Carmen.  

In a Senate investigation, De los Angeles admitted ownership of FCC.

Hilario, Pasetes, Invencion, and Rafanan withdrew more than P104 million from the FCC savings account and used it for payables in other Legacy banks and businesses.

Records of the investment loans were later erased from the books of the bank and recorded as loans approved to Labobo and Banez to pay for properties worth P131.5 million.

De los Angeles, Petralba, Hilario, were also named respondents, along with a certain Ampere Elman, in the syndicated estafa case involving the Nation Bank in Negros Occidental.

In the Nation Bank case, the respondents allegedly created 2,370 motorcycle loans worth P130.4 million and funneled the proceeds to the personal accounts of De los Angeles and Hilario.

De los Angeles and Hilario used the loan proceeds to pay for the expenditures and fund requirements of Legacy-related corporations such as Hacienda Busay, Inc., United Farmers Sugar Corp., and Legacy Motors, Inc., and for De los Angeles’ monthly allowances.

The Rural Bank of Carmen and Nation Bank are two of 12 Legacy-affiliated banks placed under PDIC receivership in December 2008 after failing to pay their depositors. 

The PDIC has filed 17 cases against Legacy-affiliated banks; 13 are criminal charges and four to recover money and property.

The 12 Legacy banks had a deposit base P14 billion from 135,000 accounts.

PDIC reimburses a maximum of P500,000 to depositors of insolvent banks. It is also mandated to examine the financial books of troubled banks to pursue litigation.