Syndicated Estafa

syndicated estafa in relation to Section 1 of PD No.
1689, which states that:
SEC 1. Any person or persons who shall commit estafa or other

forms of swindling as defined in Article 315 and 316 of the Revised
Penal Code, as amended, shall be punished by life imprisonment to death
if the swindling (estafa) is committed by a syndicate consisting of five or
more persons formed with the intention of carrying out the unlawful or
illegal act, transaction, enterprise or scheme, and the defraudation results
in the misappropriation of moneys contributed by stockholders, or
members of rural banks, cooperatives, samahang nayon(s), or farmers
associations, or of funds solicited by corporations/ associations from the
general public.
We hold that the afore-quoted law applies to the case at bar, for the
following reasons:
Under Section 1 of PD No. 1689, the elements of syndicated estafa are:

(a) estafa or other forms of swindling as defined in Artilce 315 and 316 of the
Revised Penal Code is committed; (b) the estafa or swindling is committed by a
syndicate of five or more persons; and (c) defraudation results in the
misappropriation of moneys contributed by stockholders, or members of rural
banks, cooperatives, samahang nayon[s], or farmers associations or of funds
solicited by corporations/associations from the general public.[36]
First, as defined under Section 1 of PD No. 1689, a syndicate consists of

five or more persons formed with the intention of carrying out the unlawful or
illegal act, transaction, enterprise or scheme. Five (5) accused, namely, Gilbert G.
Guy, Rafael H. Galvez, Philip Leung, Katherine L. Guy, and Eugenio H. Galvez,
Jr. were, (a) all involved in the formation of the entities used to defraud AUB; and
(b) they were the officers and directors, both of RMSI and SPI, whose conformities
paved the way for AUB to grant the letter of credit subject of this case, in AUBs
honest belief that SPI, as Gilbert Guy, et al. represented, was a mere division of
RMSI. As already discussed, although Eugenio Galvez, Jr. was not a director of
SPI, he, together with Gilbert Guy and Philip Leung, actively participated in the
scheme through their signed correspondences with the bank and their attendance in
the meetings with executives of AUB.[37] Rafael Galvez and Katherine Guy, on the
other hand, were the directors of RMSI and SPI who caused and authorized Gilbert
Guy and Philip Leung to transact with AUB.[38]
Second, while these corporations were established presumably in accordance
with law, it cannot be denied that Gilbert G. Guy, Rafael H. Galvez, Philip Leung,
Katherine L. Guy, and Eugenio H. Galvez, Jr. used these corporations to carry out
the illegal and unlawful act of misrepresenting SPI as a mere division of RMSI,
and, despite knowing SPIs separate juridical personality, applied for a letter of
credit secured by SPIs promissory note, knowing fully that SPI has no credit line
with AUB. The circumstances of the creation of these entities and their dealings
with the bank reveal this criminal intent to defraud and to deceive AUB.
Third, the fact that the defraudation of AUB resulted to misappropriation of
the money which it solicited from the general public in the form of deposits was
substantially established.[39] Section 3.1 of the General Banking Law defines banks
as entities engaged in the lending of funds obtained in the form of deposits. The
Old General Banking Act (R.A. No. 337) gave a fuller picture of the basic banking
function of obtaining funds from the public by way of deposits and the lending of
these funds as follows:
Sec 2. Only entities duly authorized by the Monetary Board of the
Central Bank may engage in the lending of funds obtained from the
public through the receipt of deposits of any kind, and all entities
regularly conducting such operations shall be considered as banking
institutions, xxxx.
Gilbert Guy et al. want this Court to believe that AUB, being a commercial
bank, is beyond the coverage of PD No. 1689. We hold, however, that a bank is a
corporation whose fund comes from the general public. P.D. No. 1689 does not
distinguish the nature of the corporation. It requires, rather, that the funds of such
corporation should come from the general public. This is bolstered by the third
whereas clause of the quoted law which states that the same also applies to other
corporations/associations operating on funds solicited from the general public. This
is precisely the very same scheme that PD No. 1689 contemplates that this species
of estafa be checked or at least be minimized by imposing capital punishment
involving funds solicited by corporations/associations from the general public
because this erodes the confidence of the public in the banking and cooperative
system, contravenes public interest and constitutes economic sabotage that
threatens the stability of the nation.[40]
RAFAEL H. GALVEZ and G.R. No. 187919

KATHERINE L. GUY,
Petitioners,
-versus-
HON. COURT OF APPEALS

and ASIA UNITED BANK,
Respondents.
x------------------------x
ASIA UNITED BANK, G.R. No. 187979

Petitioner,
-versus-
GILBERT G. GUY, PHILIP LEUNG,

KATHERINE L. GUY, RAFAEL H.
GALVEZ and EUGENIO H. GALVEZ,
JR.,
Respondents.
x--------------------------x
GILBERT G. GUY, PHILIP LEUNG G.R. No. 188030

and EUGENIO H. GALVEZ, JR.,
Petitioners, Present:
CARPIO, J.,
Chairperson,
BRION,
-versus- PEREZ,
SERENO, and
REYES, JJ.
ASIA UNITED BANK, Promulgated:

Respondent.
April 25, 2012
x ----------------------------------------------------------------------------------------x

Syndicated Estafa

Uploaded by

Copyright:

Available Formats

Syndicated Estafa

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Syndicated Estafa

Uploaded by

Copyright:

Available Formats

What are the elements of syndicated estafa according to PD No. 1689?

What did the accused use the corporations RMSI and SPI for?

syndicated estafa in relation to Section 1 of PD No.

1689, which states that:

SEC 1. Any person or persons who shall commit estafa or other

Under Section 1 of PD No. 1689, the elements of syndicated estafa are:

First, as defined under Section 1 of PD No. 1689, a syndicate consists of

RAFAEL H. GALVEZ and G.R. No. 187919

HON. COURT OF APPEALS

ASIA UNITED BANK, G.R. No. 187979

GILBERT G. GUY, PHILIP LEUNG,

GILBERT G. GUY, PHILIP LEUNG G.R. No. 188030

ASIA UNITED BANK, Promulgated:

You might also like

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.