MANILA, Philippines - A former executive of the failed Legacy banks has been nabbed in Bohol and arraigned in Danao City in Cebu for syndicated estafa filed by the state-run Philippine Deposit Insurance Corp. (PDIC).
In a statement, PDIC said Alexis Petralba was arraigned recently at the Danao City Regional Trial Court Branch 25 for syndicated estafa filed by the PDIC for the closed Rural Bank of Carmen Inc. (Cebu).
Petralba was nabbed in Petralba in Tagbilaran City, Bohol last month on the strength of a warrant of arrest issued for a separate case filed by the Bangko Sentral ng Pilipinas. He had eluded capture for several years after jumping bail.
Under Criminal Case No. NDO-5160, Petralba together with Legacy owner Celso de los Angeles, Darwin Galan, Roy Hilario, Fernando Rafanan Jr., and Reynaldo Manit conspired to “misappropriate and/or convert” P16.9-million funds of the Rural Bank of Carmen for their personal use through deceitful and fraudulent means.
Records of the case showed that the respondents created 39 fictitious loans and made it appear that the alleged borrowers had received the loan proceeds.
The accused had also made it appear that the loans had been erased through De los Angeles’ supposed acquisition for P32 million – through his Edifice Realty and Development Corp. – of the 9.8-hectare Calanggaman Island property located in Tinabilan, Palompon, Leyte from the Rural Bank of Carmen. Edifice was supposed to make the payments, but as it turned out the payments were funded by motorcycle and investment loans of Legacy Motors Inc. and Fusion Capital Corp.
More than P23 million of the amount was likewise made to appear to have been fully extinguished with the assignment of five properties traced to Dynamic Bank. The owners of the properties denied having sold, conveyed or assigned the properties.
Petralba would also be arraigned in a Bacolod City court in connection with another estafa case filed by the PDIC involving Nation Bank. Petralba, De los Angeles and other officers of Legacy banks are facing a string of criminal suits filed by the PDIC with the Department of Justice.
The PDIC has paid almost P11.7 billion in public funds to depositors of the closed Legacy banks while the estimated realizable value of the assets of the group was placed at only P587.3 million.