Mr. Banlee C. Choa, the former Chairman and President of the closed GMA Rural Bank who has been charged with estafa by the Philippine Deposit Insurance Corporation (PDIC), after misappropriating P748 million in bank funds, will be arraigned on January 12, 2015. Based on the first endorsement by Police Superintendent Redrico Atienza Maranan of the Imus City Police Station, accused Choa voluntarily surrendered to their office on November 6, 2014 pursuant to a warrant of arrest issued against him. Accused Choa has been in detention at the Imus City Police Station following his voluntary surrender.

The accused's arraignment, originally scheduled on December 19, 2014 before the Regional Trial Court (RTC) of Imus City, Branch 20, was reset to January 12, 2015 due to the unavailability of the public prosecutor. The Department of Justice (DOJ) charged Choa with estafa based on a complaint filed by PDIC before the DOJ Task Force on Financial Fraud.

Based on the complaint filed by PDIC and the criminal information filed by the DOJ before the court, Choa is accused of estafa for misappropriating funds of GMA Rural Bank in his capacity as President/Chief Executive Officer/Chairman of the bank. He created a special division in GMA Rural Bank, which he called the "executive/extension office" wherein he, through the creation of fictitious loans, diverted around P748 million of bank funds generated via deposit-taking activities. The "executive/extension office" in turn, transferred the misappropriated funds to corporations and business entities owned and controlled by the accused Choa and/or members of his immediate family through the grant of unsecured loans.

GMA Rural Bank was placed under the receivership of PDIC in February 2011.

The filing of charges against Choa that led to his surrender is in line with PDIC's efforts to bring to justice parties that victimize depositors, circumvent the deposit insurance scheme or engage in unlawful acts that may put the Deposit Insurance Fund (DIF) at risk. PDIC vigorously pursues legal action against erring bank officers, for the benefit of depositors/creditors and to protect the DIF, PDIC's funding source for payment of insured deposits.

* * * * *