NEWS/PRESS RELEASE
PR-121-19
Date of Release: October 24, 2019
FOR IMMEDIATE RELEASE

The Department of Justice (DOJ) issued a Resolution indicting the former branch manager and former cashier of the closed Advance Bank, Inc. for qualified theft under Article 310 of the Revised Penal Code and violation of the PDIC Charter.

The case was based from the complaint filed by the Philippine Deposit Insurance Corporation (PDIC) with the DOJ. Violation of the PDIC Charter is punishable with imprisonment of not less than six years up to 12 years and/or fine of P50,000 to P2.0 million.

The DOJ Resolution dated June 11, 2018 stated that the respondents conspired and took advantage of their positions to unlawfully take P510,000.00 from Advance Bank by causing it to appear that the depositors pre-terminated their accounts and received the proceeds when in fact they did not. The DOJ Resolution further stated that “the respondents’ position in the bank are entrusted with the possession of funds/money and this is due to the confidence reposed upon them.” The PDIC investigation was prompted after the depositors learned that their deposit accounts were pre-terminated prior to bank closure. The depositors, in separate affidavits, denied the pre-termination of their deposit accounts.

Advance Bank, Inc. was ordered closed by the Monetary Board of the Bangko Sentral ng Pilipinas and placed under PDIC receivership on July 30, 2009.

The filing of cases against erring individuals is in support of PDIC’s efforts to bring to justice parties that engage in acts of anomalies, irregularities and fraud that pose risk to depositors and the Deposit Insurance Fund, PDIC’s main fund source for payout of deposit insurance claims. PDIC continues to pursue legal actions against bank officials and personnel who engage in unsafe and unsound banking practices that pose grave threats to the stability of the country’s banking system. PDIC is mandated to generate, preserve, maintain faith and confidence in the country’s banking system, and protect it from illegal schemes and machinations.

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The Philippine Deposit Insurance Corporation (PDIC) was established on June 22, 1963 by Republic Act 3591 to provide depositor protection and help maintain stability in the financial system by providing deposit insurance. Effective June 1, 2009, the maximum deposit insurance coverage is PhP500,000 per depositor. All deposit accounts by a depositor in a closed bank maintained in the same right and capacity shall be added together. A joint account shall be insured separately from any individually-owned deposit account.

PDIC news/press releases and other information are available at the website, www.pdic.gov.ph.

Corporate Communications Dept.
PHILIPPINE DEPOSIT INSURANCE CORPORATION
Tel: (02) 8841-4636 to 39
Trunkline: (02) 8841-4000
Website: www.pdic.gov.ph.
Email: ccd@pdic.gov.ph
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