Benito Araneta mugshot. Photo courtesy of PNP PIO
MANILA, Philippines–Intelligence police officers arrested Benito Araneta, cousin of former first gentleman Mike Arroyo, over his alleged involvement in the P229.5-million syndicated estafa that caused the shutting down of LBC Development Bank in 2011, police said Wednesday.
Araneta is one of the five borrowers suspected to have connived with LBC bank chairman Ma. Eliza Berenguer. They were all charged with syndicated estafa by the Department of Justice (DOJ) in a complaint filed by the Philippine Deposit Insurance Corporation (PDIC).
Chief Superintendent Reuben Theodore Sindac, PNP Public Information Office chief, said in a press briefing that Araneta did not resist the arrest on Tuesday afternoon at his residence in the upscale Ayala Alabang village in Muntinlupa City.
Araneta allegedly used the P229,469,505.10 he borrowed from the bank for personal use.
“During the stint of Berenguer as LBC Bank President, it was shown that Araneta was already paid but in fact, Araneta never paid the money he borrowed from the bank,” Sindac said.
“The bank transaction of Araneta resulted [in] the loss of hard earned money of undetermined number of depositors,” he added.
He is facing15 counts of large scale estafa, a non-bailable offense.
The arrest made was upon the order of Judge Maximo de Leon of the Makati Regional Trial Court branch 143 issued last August 1.
The other borrowers were Ma. Lourdes Senn, Ernesto Barrios, Charito Zambales and Francisco Climent.
Chief Superintendent Diosdado Ramos, PNP Intelligence Group, said Araneta is temporarily detained at the PNP Intelligence Group.
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