8 investment execs indicted for estafa

ILOILO CITY, Philippines—Officials of a controversial financial investment firm in Iloilo have been indicted for allegedly defrauding hundreds of investors involving billions of pesos.

In a five-page resolution dated May 20, the Iloilo City Prosecutor’s Office resolved to charge eight officers and employees of the Evergreen Finance (Iloilo) Inc. (EFI) for syndicated estafa and for violation of Republic Act No. 8799 (Securities and Regulation Code).

Those ordered charged were: Reynaldo Navarro, EFI president; his wife Aida Navarro, corporate treasurer; sons Jeffrey Rey Navarro, Kenneth Ray Navarro, Eric Rey Navarro and Hubert Ray Navarro; Tricelle Claire Go-Navarro; and Gregorio Pagaran Jr., manager.

Reynaldo was also indicted for a separate charge for violation of Batas Pambansa Bilang 22 (Anti-Bouncing Check Law).

The respondents’ legal Alfredo Arungayan III said they had filed motions for reconsideration last Friday and on Monday.

“My clients insist on their innocence and deny the allegations especially against (Reynaldo’s) children who were in no way involved in the transactions,” Arungayan told the Inquirer.

In its resolution, the prosecutor’s office affirmed the allegations in the complaint filed by the National Bureau of Investigation in behalf of 17 complainants all belonging to the Chinese-Filipino community in Iloilo.

“The evidence are sufficient to hold liable the aforementioned respondents,” according to the resolution penned by investigating prosecutor Honorio Aragona Jr. and approved by Chief City Prosecutor Peter Baliao.

The case stemmed from a complaint filed by small Chinese-Filipino businessmen and retirees in Iloilo who sought the help of the Department of Justice in the recovery of about P400 million in investments and interests from the EFI.

Navarro is also facing several related cases before courts in Iloilo.

Sources have estimated the investments in EFI to reach P5 billion. The financial losses have severely affected the Chinese-Filipino community in Iloilo slowing down businesses, according to various sources.

The complainants said they invested in the EFI, some as far as 15 years ago, and were assured of high interest rates. They were issued EFI placement certificates.

But they said the EFI started to renege on its obligations to pay the agreed interest rates and failed to return their investments starting May 2012.

Checks issued by Navarro to the complainants were also rejected by banks as the corresponding bank accounts were already closed.

The NBI had said in its recommendation that the respondents “formed/organized and engaged themselves in the enticement, solicitation of complainants’ money and its eventual misappropriation.”

Arungayan had said in an earlier interview that Navarro has promised to pay all his obligations but denied he swindled his clients.

Navarro cannot fully pay his obligations immediately due to failure of creditors to pay their loans leading to business losses, according to his lawyer.