The Philippine Deposit Insurance Corporation (PDIC) filed with the Department of Justice (DOJ) Task Force on Legacy its third syndicated estafa case against Celso delos Angeles and 16 others including the Board of Directors of the closed Rural Bank of Bais. PDIC’s complaint states that these respondents were responsible for siphoning P29.6 million from the bank through fraudulent transactions. These funds were generated from the general public through aggressive deposit solicitation. RB Bais is a Legacy-affiliated bank now under PDIC receivership.

The criminal case emanated from the creation of 2,749 fictitious motorcycle loans from February to September 2007 that aggregated to about P151.92 million, net proceeds of which amounting to P140.2 million were deposited to the savings account of Legacy Motors, Inc. (LMI) in RB Bais. LMI is owned by de los Angeles.

Of the total loan accounts, 2,741 were not supported by loan documents. It was found that the amount of P29.6 million was withdrawn from the LMI account of which P27.176 million was deposited to the accounts of delos Angeles in other banks while P2.5 million allegedly went into the election fund of delos Angeles.

PDIC said in its complaint that the motorcycle loans were later erased from the books of RB Bais by making it appear that these were paid using the withdrawals from the account of delos Angeles-owned Fusion Capital Corporation with RB Bais. The account of Fusion was later found to be funded by fictitious or simulated investment loans.

Among those charged were Alexis Petralba, Roy Hilario, Ariel Isberto, Agnes Santiago, Arnel Sulquiano, Jeanette Ortiz, Myrna Axalan, Carmencita Cedo, Rolando Labrador, Wilfredo Novo, Edgar Cando, Na, Lidonna Gabayan, Cecil Ibgos, Wieshaun Ebacuado, Joylyn Tandoy and Leopoldo Regino.

PDIC President Jose C. Nograles said that PDIC continues to investigate the Legacy-affiliated banks and gather evidence for subsequent cases to be filed. He said that PDIC is currently investigating some 44 more cases involving fictitious loans/deposits of Legacy corporations aimed at siphoning off funds from the Legacy banks for the benefit of delos Angeles, anomalous assignments of overvalued properties to Legacy banks to erase fictitious loans, conversion of pre-need plans to deposit without actual cash inflow, accommodation by the Legacy banks of unfunded personal checks of de los Angeles, creation of fictitious deposits from proceeds of fictitious loans, and creation of fictitious loans to acquire properties for the personal use of delos Angeles and Legacy-related companies.