Former CEO of rural bank facing estafa charges for allegedly embezzling P748M

A former bank executive is now facing arrest apart from the estafa charges filed against him by the Philippine Deposit Insurance Corp. (PDIC) for supposedly embezzling P748 million of his own bank's funds.

 

The Regional Trial Court (RTC) Branch 20 of Imus, Cavite has issued a warrant of arrest against Banlee C. Choa, former chairman and president of the closed GMA Rural Bank based in the same city, according to a statement published on the Department of Finance's official website over the weekend.

 

Choa, however, remains at large.

 

The charges stem from allegations that Choa stole funds by creating a special division in the rural bank to purposely grant unsecured loans to corporations and business entities that he and members of his family owned and controlled, 

 

"Upon receipt of the said amount through the said corporations, Choa used the same for himself and for his own benefit," it added.

 

The former bank executive supposedly granted loans through an "Executive/Extension Office" and loaned them through his own Tri-B Corporation, Hauskon, Landblazers, and Landprimers. 

 

Several other members of Choa's family are also facing charges filed by the Philippine Deposit Insurance Corporation (PDIC) for their alleged active involvement in the management of the rural bank and its Executive/Extension Office. They include former bank director Ma. Corazon T. Choa, Cherry Lynn Madarang, Carson Choa, Cendy Choa, and Carter Choa, according to a separate PDIC statement.

 

GMA Rural Bank was placed under PDIC receivership in February 2011, the statement said. 

 

From its humble beginnings, in the relatively small but progressive town of General Mariano Alvarez, Cavite, the rural bank steadily established its market base by adding four branches that included those in Imus, Biñan, Lipa City and Muntinlupa City, according SME.com.ph. – Raffy Cabristante/VS, GMA News