NEWS/PRESS RELEASE
PR-113-19
Date of Release: October 25, 2019
FOR IMMEDIATE RELEASE

The Municipal Trial Court of Calasiao in Pangasinan found two officers of the closed Rural Bank of Sta. Barbara (Pangasinan), Inc. guilty beyond reasonable doubt for three counts of falsification of commercial documents in violation of the Revised Penal Code.

In her February 27, 2019 Decision, Judge Designate Lordaliza Rivera – Mabborang sentenced Lydia Cruz, former branch manager, and Sheila Geslani, former bookkeeper, of the Rural Bank of Sta. Barbara to arresto mayor of one year and one day imprisonment to prision correctional of three years, six months and 21 days imprisonment and to pay a fine of P5,000 with subsidiary imprisonment in case of insolvency for each count, for falsification of commercial documents.

The Philippine Deposit Insurance Corporation (PDIC) filed in 2010 criminal charges against Cruz and Geslani for falsification of commercial documents under the Revised Penal Code and violations of the PDIC Charter for the creation of fictitious deposits and conducting business in an unsafe or unsound manner.

PDIC investigation showed that Cruz and Geslani withdrew and closed a deposit account without the knowledge and consent of the depositor and created 30 fictitious deposits with an aggregate amount of P3.6 million. The investigation was prompted after the depositor learned that his deposit account was no longer outstanding upon closure of the Bank. The criminal charge of creation of fictitious deposits and conducting business in an unsafe or unsound manner, which carry a penalty of imprisonment of six years and one day to 12 years and/or a fine of P50,000 to P2.0 million against the respondents is presently being heard before the Regional Trial Court of Dagupan City, Pangasinan.

The decision of the MTC debunked the defense of Cruz and Geslani that they merely followed the instruction of the Board of Directors of the Bank. The MTC, bearing on the experience and individual competencies of Cruz and Geslani, held that their positions are fiduciary in nature and are therefore expected to exercise greater care and prudence than others in their dealings because banking business is impressed with public interest.

Rural Bank of Sta. Barbara, Inc. was a seven-unit bank ordered closed by the Monetary Board of the Bangko Sentral ng Pilipinas (BSP) and placed under receivership of the PDIC on November 16, 2007.

The PDIC continues its pursuit of justice against erring bank owners, officers and unscrupulous parties who take advantage of the deposit insurance system for their personal gain. The Corporation's vigorous legal actions are critical in deterring other parties from taking advantage of the deposit insurance system, and protecting the interests of the depositors and the Deposit Insurance Fund, PDIC's funding source for payment of deposit insurance.

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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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