Manila court convicts father-and-son banker of estafa

MANILA, Philippines—The Manila City Regional Trial Court convicted a father-and-son banker of estafa and sentenced them to suffer 14 years of imprisonment.

Luis Co, former president of the closed Jade Progressive Savings and Mortgage Bank, and his son Alvin Milton, vice president of the same bank, were also ordered to pay P3.03 million in damages.

Acting Presiding Judge Buenaventura Albert J. Tenorio Jr. of the Manila RTC Branch 15 found the two guilty of estafa under Article 315 of the Revised Penal Code for defrauding the bank in the aggregate amount of P3,032,909 by making it appear that amount was paid to Acme Investigation Services Inc. for surveillance and security services.

The complaint was filed by the Philippine Deposit Insurance Corporation.

In his decision on February 28, 2013, Tenorio found beyond reasonable doubt that the Cos disbursed a total of P3.032 million in bank funds to a non-existent security agency and that the funds were traced to have been deposited to a fictitious bank account opened by the accused.

Officers from the Philippine Association of Detective and Protective Agency (Padpao) and the Security Agencies and Guards Supervision Division (SAGSD) of the Philippine National Police (PNP) testified that Acme Investigation Services Inc. is neither a member of Padpao nor registered with the Sagsd. Padpao is the umbrella organization of all security agencies in the Philippines.

Judge Tenorio also added that the security agency was not registered with the Securities and Exchange Commission.

Meanwhile, accused Luis Co was granted his prayer for temporary liberty given his option to either file a Motion for Reconsideration or file an appeal. On the other hand, a warrant of arrest has been issued against Alvin Co.

The Cos argued that they did not commit any deceit or fraudulent act to defraud the bank, and that their criminal liability cannot be established by the mere fact they were signatories to the documents presented in the case.

But the court said they cannot feign innocence by arguing that “they are not expected to scrutinize every document presented to them.”

He said that by holding key positions in the bank as president and assistant vice president, the father and son were expected to take responsibility in verifying whether the bank had an existing contract with Acme, given the amount the bank is paying the security agency on a monthly basis.

The Monetary Board ordered the closure of Jade Progressive Savings and Mortgage Bank and was placed under PDIC receivership in December 2000. The bank is currently under liquidation.