The former Chairman and President of a closed rural bank was arraigned on January 12, 2015 at the Regional Trial Court (RTC) of Imus City, Branch 20 for estafa charges in the amount of P748 million.

Charged with estafa is Mr. Banlee Choa, former Chairman and President of the closed GMA Rural Bank, a bank under liquidation by the Philippine Deposit Insurance Corporation (PDIC). Choa voluntarily surrendered in November 2014 and has been detained at the Imus City Police Station in Cavite since then. Choa pleaded not guilty after details of the estafa charges were read to him in open court. Acting Presiding Judge Josefina E. Siscar has set the pre-trial of the case on March 9, 2015.

Based on the complaint filed by PDIC with the Department of Justice (DOJ) Task Force on Financial Fraud 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 to the "executive/extension office", which 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.

Records of the DOJ show that PDIC has filed a Petition for Review with regard to the dismissal of its complaint relative to the other co-respondents of Choa who are former officers of GMA Rural Bank or officers of other Choa-controlled corporations that benefited from the diversion of bank funds.

The filing of the criminal complaint against Choa, other former officers of the GMA Rural Bank and other officers of other Choa-controlled corporations is in line with PDIC's efforts to bring to justice parties who commit fraud, circumvent the deposit insurance scheme or engage in unsafe and unsound banking practices 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.

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

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