Two Former Rural Bank Execs Convicted for Ponzi Scheme

06 January 2016

The Manila Metropolitan Trial Court Branch 22 held two former executives of Rural Bank of San Jose, Inc. (RBSJI) as "guilty beyond reasonable doubt" for violation of Section 35 of The New Central Bank Act. DOJ prosecutors were able to prove that the two executives made false statements on the Statement of Condition and the Consolidated Statement of Condition of RBSJI to mislead the Bangko Sentral ng Pilipinas (BSP) and the Monetary Board about RBSJI's actual financial condition.

RBSJI was a member of the Legacy banking group and one of the banks used by said group to generate 14 Billion pesos in deposits from the general public through different variations of the Ponzi scheme. The money was siphoned off and placed to personal accounts by the perpetrators. According to the BSP, the "Ponzi scheme organizers lure[d] prospective investors with high returns". However, the program managers, who were usually fictitious, disappeared and left investors empty-handed.

The convictions are testament to the hard work and dedication of the DOJ prosecutors, who shall continue to bring perpetrators of the Ponzi scheme to justice and protect the public.

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