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MANILA, Philippines – State-run Philippine Deposit Insurance Corporation (PDIC) has filed another set of syndicated estafa charges against owners and officials of the closed Araneta-led LBC Development Bank (LBC Bank) for misappropriating P60 million ($1.28 million) worth of deposits.
Charges of syndicated estafa were filed before the Department of Justice against 11 former directors, officers, and employees of LBC Bank as well as two employees of LBC Development Corporation, PDIC said in a statement.
Respondents in the case docketed as XVI-INV-15H-00315 were former LBC Bank president and chairman Ma. Eliza G. Berenguer (Ma. Eliza V. Gonzales), as well as former bank directors Juan Carlos Araneta, Fernando Araneta, Santiago Araneta, Joaquin Garcia, and Antonio Longa.
Also charged were former LBC Bank vice president for treasury Ofelia Cuevas; former vice president for finance Apolonia Ilio; former head of finance accounting unit Andrea Asegurado; and two unidentified signatories each from LBC Bank and LBC Development Corporation.
Charges of falsifying commercial documents under Article 172 of the Revised Penal Code and conducting business in an unsafe and unsound manner in violation of Republic Act 3591 (PDIC Charter) were also filed against the respondents.
The first case of estafa docketed under Criminal Case No. 14-1092-1107 was filed before the Regional Trial Court of Makati City, Branch 143 for allegedly defrauding the bank of P229.5 million ($4.89 million).
Two-pronged scheme
Based on the complaint filed before the justice department, PDIC said the respondents connived to defraud the LBC Bank an aggregate amount of P60 million ($1.28 million) through a two-pronged scheme.
The complaint alleged that respondents caused LBC Bank to obtain a P30 million ($639,113.90) loan from a commercial bank and they did not record it as a liability in LBC Bank’s books.
The loan proceeds were allegedly diverted by the respondents to LBC Development Corporation that used the amount to reduce the outstanding balance of the advances of the LBC affiliates such as LBC Express and LBC Mabuhay, PDIC said.
Furthermore, it was alleged that respondents used LBC Bank’s funds, which were primarily derived from the solicitation of deposits from the public, to pay for the unrecorded P30-million loan ($639,113.90).
As of bank closure, all advances to the LBC affiliates ,including funds for their remittance operations aggregated to P5.4 billion ($115.09 million).
On April 29, PDIC sued the former stockholders and officers of the closed bank for estafa and falsification of commercial documents under the Revised Penal Code and Conducting Business in an Unsafe and Unsound Manner under Section 21 (f) and (g) of Republic Act No. 3591, as amended.
The complaint alleged that LBC Bank officers fraudulently caused the issuance of LBC shares of stocks to the Araneta Group in July 2008 and made it appear as if these stockholders infused P39.15 million ($834.33 million) to LBC Bank. However, allegedly, LBC Bank did not actually receive from the Aranetas the consideration for the stocks issued to them.
LBC Bank's extensive capital deficiency led to its closure in 2011 affecting more than 26,000 depositors, whose aggregate deposits of P6.1 billion ($130.05 million) took a toll on PDIC's Deposit Insurance Fund (DIF).
PDIC has paid LBC Bank depositors P2.9 billion ($61.83 million) in insured deposits as of March 31, while uninsured deposits amounting to P2.7 billion ($57.54 million), involving 1,437 accounts would be paid out of the bank's assets. – Rappler.com
$1 = P46.93
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