CA rules Jade Bank owners liable for estafa

The Court of Appeals has upheld the decision of the Regional Trial Court-Manila Branch 15 to convict two bank owners for the crime of estafa for authorizing payments to a fictitious security agency and depositing the proceeds to their bank accounts.

"The appellate court sentenced Luis L. Co and his son, Alvin Milton S. Co, the former president and assistant vice president, respectively, of Jade Progressive Savings and Mortgage Bank (Jade Bank), to suffer imprisonment of four years and two months to 20 years," the Bangko Sentral ng Pilipinas said on Tuesday.

The appellate court also affirmed the trial court’s order for the bank owners to indemnify Jade Bank, its depositors and creditors and the Bangko Sentral, the sum of PhP3,032,909.00, plus legal interest from the filing of the complaint until fully paid, and costs.

The CA decision was dated December 22, 2015, the central bank said.

During an investigation, the BSP uncovered payments authorized by the Co father and son for P3,032,909.00 supposedly for services rendered by a fictitious security agency.

"The former accountant of the bank testified in court that she witnessed accused Luis and Alvin Co open the bank accounts where the checks were deposited, the central bank noted.

"The appellate court found that Luis and Alvin Co’s contentions cannot stand against the overwhelming evidence of the prosecution indicating a joint criminal design between them.  That is, both Luis and Alvin Co conspired to facilitate the unlawful release of Jade Bank’s funds," the central bank added.

The case prosecution, filed in 2000, lasted for over 10 years owing to the innumerable delays in the trial. 

"The 10 years it took to prosecute the case demonstrate the resolve of the BSP, as bank regulator, to go after bankers who commit fraud and other irregularities and make them accountable for their actions," the central bank said. – VDS, GMA News