Man accused of pushing bank into bankruptcy nabbed in Muntinlupa

MANILA, Philippines - Police on Tuesday arrested in Muntinlupa City a businessman, who borrowed over P229 million from a bank which led to its bankruptcy.

Operatives of the Philippine National Police's Intelligence Group nabbed former banker Benito Ramon Araneta at his residence in Ayala Alabang at around 4:10p.m.

Police said Araneta has an existing arrest warrant issued by the Makati City Regional Trial Court last Aug. 1, 2011 for 15 counts of estafa.

The court did not recommend any bail for Araneta.

Reports reaching Camp Crame showed that the case stemmed from the complaint filed by the Philippine Deposit Insurance Company at Ayala Avenue, Makati City on behalf of LBC Bank depositors on 2006.

Afterward, the PDIC took over the LBC Bank due to bankruptcy.

The PDIC forensic investigation revealed that Araneta borrowed more than P229 million, with the help of Ma. Eliza Berenguer, then president of LBC Bank. The two allegedly personally used the money.

During the stint of Berenguer as LBC Bank president, Araneta supposedly paid the money he borrowed but the PDIC probe showed otherwise.