The Philippine Deposit Insurance Corporation (PDIC) filed a syndicated estafa case against Celso delos Angeles, his son Martin Nicolo delos Angeles and 19 others for conspiring to siphon off funds of Rural Bank of Carmen in Cebu solicited from the public by way of deposits through fraudulent, anomalous, and irregular transactions.

The case was filed by PDIC against de los Angeles et. al. on March 11, 2009, before the Department of Justice. The complaint indicates through documents the direct involvement of delos Angeles and officers of Legacy-related corporations in these transactions. In its complaint, PDIC stated that delos Angeles created 39 fictitious loans amounting to P16.85 million in RB Carmen, and diverted the proceeds to his son, Martin Nicolo, and to other Legacy related corporations. The 39 fictitious loans were erased from the books of RB Carmen after delos Angeles himself purchased the fictitious/simulated loans in consideration for the Calanggaman property, a 9.8 hectare island located in Calanggaman, Tinabilan, Palompon, Leyte.

PDIC said in its complaint that a month after delos Angeles assigned the Calanggaman property, RB Carmen was made to appear to have sold the Calanggaman property to EDIFICE Realty and Development Corporation for P32 million payable in 15 years.

Per SEC records, EDIFICE Realty and Development Corporation is 99% owned by Resource Providers and Manpower Services, Inc. while the remaining 1% is owned by delos Angeles and his family. Resource Providers and Manpower Services, Inc. is, in turn, 98.94 % owned by delos Angeles and the remaining 1.06% by his son, Martin Nicolo and nominee lawyers.

PDIC said that the alleged amortization payments by EDIFICE for the Calanggaman property were funded by the accounts of Legacy Motors, Inc. (LMI) and Fusion Capital Corporation (FCC), both Legacy related corporations, which accounts were later found to be funded with proceeds of motorcycle and investment loans which were also fictitious.

EDIFICE’s obligation with RB Carmen was found to have been fully discharged with the assignment of five properties located in Batangas but these properties were traced to another Legacy bank, the closed Dynamic Bank, which has a mortgage lien on these properties. The registered owners of the mortgaged properties denied having sold the properties in favor of respondents Rolando V. Mata, Judith I. Dionson, Mary Ann Biarcal, Cristina M. Metante and Warren Collamat.

Later, the title of the Calanggaman property was said to have been transferred to EDIFICE for a measly sale amount of P1 million in October 2008.

PDIC President Jose C. Nograles said that the Corporation’s Legal Affairs Sector continues to investigate the Legacy-affiliated banks and gather evidence for subsequent cases to be filed.

Syndicated estafa is a non-bailable offense and is punishable with lifetime imprisonment.