July 18, 2016

The Philippine Deposit Insurance Corporation (PDIC) filed on June 27, 2016 with the Department of Justice (DOJ) a criminal complaint against Mark Ernest D. Rosario, former President/Manager of the closed Rural Bank of Labrador, Inc. (RB Labrador), for estafa. RB Labrador is a single-unit bank ordered closed by the Monetary Board and placed under receivership of the PDIC on April 16, 2015.

The respondent is facing charges of estafa through falsification of documents pursuant to Articles 315 (2) (a) and (1) (b), in relation to Articles 171 and 172 of the Revised Penal Code.

In its complaint, PDIC alleged that Rosario sold two (2) motor vehicles owned by RB Labrador for P225,000 in 2013 without authority from the Bank's Board of Directors. Investigation showed that subject vehicles were sold by Rosario using Secretary's Certificates supposedly authorized by the Bank's Board. Proceeds from the sale were found to have not been turned over to and not recorded in the books or records of RB Labrador.

Further investigation by PDIC revealed that the signatory to the Secretary's Certificates was neither elected nor designated as the Bank's Assistant Corporate Secretary, but was the Bank's appraiser who pointed to Rosario as the one who instructed him to sign the certificates. PDIC alleged that Rosario did not have authority to sell or dispose the properties of RB Labrador without approval from its Board and deliberately concealed from the Bank the sale transactions covering the vehicles. To date, the respondent has not turned over the proceeds from the sale of the subject vehicles. He also failed to provide any explanation or reply about the sale transactions.

Under Article 315 of the Revised Penal Code, estafa involving more than P22,000 is punishable with prision mayor (6 years and 1 day to 12 years imprisonment) or reclusion temporal (12 years and 1 day to 20 years imprisonment).

Filing of charges against erring bank officers and employees is in support of PDIC's efforts to bring to justice parties who engage in acts that will put depositors and the Deposit Insurance Fund (DIF) at risk. The 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. The 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 P500,000 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.