PDIC files syndicated estafa vs. defunct LBC Bank officers

The Philippine Deposit Insurance Corp. (PDIC) sued certain executives of defunct LBC Development Bank for misappropriating P60 million in deposits.

 

The government-run corporation filed syndicated estafa charges against 11 directors, officers and employees of the bank and two employees of stockholder LBC Development Corp. with the Department of Justice on Monday.

 

PDIC implicated in the case former president and chairman Ma. Eliza Berenguer, directors Juan Carlos Araneta, Fernando Araneta, Santiago Araneta, Joaquin Garcia and Antonio Longa, vice president for treasury Ofelia Cuevas and vice president for finance Apolonia Ilio.

 

Andrea Asegurado, head of the finance accounting unit, and two unidentified signatories from LBC Bank and LBC Development were also named respondents to the complaint.

 

The accused allegedly connived to cause LBC Bank to borrow P30 million from a commercial lender and use funds largely comprising deposits from the public to settle the unrecorded loan.

 

According to the complaint, the money was diverted to LBC Development to reduce the outstanding balance of advances granted to LBC Express and LBC Mabuhay. Advances by LBC affiliates totalled P5.4 billion as of the bank’s closure.

 

The officers and employees also face charges for falsifying commercial documents under the Revised Penal Code and for conducting business in an unsafe and unsound manner in violation of the PDIC Charter.

 

PDIC placed the 20-unit thrift bank under receivership on September 9, 2011 after the Monetary Board of the Bangko Sentral ng Pilipinas ordered its closure. —ALG, GMA News