Mike Arroyo's cousin nabbed for estafa

MANILA, Philippines - Agents of the Philippine National Police Intelligence Group (PNPIG) on Tuesday afternoon arrested a cousin of former First Gentleman Jose Miguel Arroyo for his alleged involvement in the P229.5-million syndicated estafa case that caused the collapse of the LBC Development Bank in 2011.

According to the PNP, Benito Ramon Araneta was arrested at about 3:50 p.m. at his residence in Acacia Ave., Ayala Alabang in Muntinlupa City.

Police said Araneta was arrested by officers from the IG’s Regional Intelligence Unit-National Capital Region led by Insp. Christian Burgos who coordinated with the Ayala Alabang Police Station and officials of Barangay Ayala Alabang.

Araneta, the PNP said, is now detained in Camp Crame. Police said Araneta was arrested after the Department of Justice’s (DOJ) Task Force on Financial Fraud has approved the filing of a complaint for syndicated estafa against him. Syndicated estafa is a non-bailable offense.

Araneta, police said, is facing 16 counts of syndicated estafa before the Makati Regional Trial Court Branch 143 under Presiding Judge Maximo de Leon.

The DOJ had earlier approved the filing of syndicated estafa charge against Araneta for having borrowed almost P230 million with non-existent collateral from the LBC Development Bank that helped trigger the thrift bank's collapse.

Also charged along with Araneta with the same non-bailable offense was LBC Bank Chair and President Ma. Eliza Berenguer, who the DOJ said had ordered the release of bank depositors' money to fund Araneta's borrowing scheme.

The DOJ rejected Araneta and Berenguer's claim that bank receiver Philippine Deposit Insurance Corp. (PDIC) had been "concealing" the promissory notes allegedly executed by Araneta as collateral to the borrowings.

Araneta's sister, Urdaneta Apartments Corporate Secretary Maria Lourdes Senn, was cleared of the same charge for lack of evidence, along with three others.

The DOJ's Task Force on Financial Fraud released a new resolution after the six original accused petitioned for a review of the original 2013 indictment.

The collapsed bank was owned by Araneta's cousin Carlos Araneta, whose family also controls the LBC remittance and cargo business.

The bank borrowings were made between 2006 and 2008 when Benito Araneta was not only a Malacañang nominee but also an independent director of Philweb and related companies.