The Philippine Deposit Insurance Corp (PDIC) filed another syndicated estafa case against Legacy Group owner Celso de los Angeles, his wife, son, and 7 other Legacy executives for allegedly misappropriating up to P56 million funds in Nation Bank.

The PDIC filed the case Thursday before the justice department's Task Force on Legacy. The case focused on how a farmland in Negros Occidental was used as a collateral for a dubious P56 million loan with the Bacolod-based Nation Bank. However, PDIC said in a statement that its investigators found that the "borrowers" named in loan--the heirs of the farmland--they dealt directly with De los Angeles and denied any loan transaction with the rural bank.

According to the PDIC complaint, the heirs--Solinap brothers Jose, Marciano, Nicolas, Jesus and Geronimo--"did not and never intended" to obtain a loan with Nation Bank, one of the 12 Legacy-affiliated rural banks that closed and was placed under PDIC receivership in December 2008.

The Solinap brothers, heirs of the late owner of Hacienda Busay located in Bago City, Negros Occidental, reportedly sold the property to De los Angeles for P37 million. They said they were already paid P30 million, of which P25 million came in the form of certificates of time deposits and checks from Nation Bank.

But while the PDIC was able to trace the P25 million of the P56 million loan to the Solinap brothers, it said the P31 million loan balance were actually diverted to De los Angeles's savings accounts maintained with Nation Bank.

"The plot thickens as delos Angles and other respondents to the case allegedly made it appear that Nation Bank acquired Hacienda Busay by virtue of an undated Deed of Absolute Assignment after merely a month from the time the purported P56 million loan was extended to the Solinap brothers," said PDIC.

PDIC said payment for the loan was, in paper, being amortized by Hacienda Busay Inc, a corporation owned and controlled by De los Angeles.

PDIC said De los Angeles made it appear that Nation Bank sold the Solinap brothers' Hacienda Busay farmland to Hacienda Busay Inc. for P80 million. "The respondents afterwards made it appear that Hacienda Busay Inc. made amortization payments to Nation Bank," PDIC said.

The amortization payments, the PDIC said, were actually coming from one of De los Angeles' savings accounts with Nation Bank. The savings account, in turn, was being funded by another set of fictitious and simulated motorcycle loans.

Finally, PDIC said delos Angeles, et. al. made it appear that the remaining balance of the purchase price of the hacienda in the amount of P64.76 million was fully settled by Hacienda Busay Inc. through an Amendment to Sales (Mortgage) Contract Receivable dated August 22, 2008.

Under this agreement, PDIC said 33 properties, registered in the name of another closed Legacy bank, Rural Bank of Bais, Inc., were assigned to Nation Bank.
According to PDIC, Delos Angeles's wife was one of the incorporators of Hacienda Busay, Inc. while his son, Martin Nicolo, was the majority owner of CGA Holdings Inc. which owns the majority shares of Hacienda Busay Inc.

PDIC said Martin Nicolo was also believed to have benefited from the proceeds of the Solinap "loan" because he was the recipient of the withdrawal transaction of delos Angeles in October 2006 for the amount of P471,790.

The other named respondents in the case are Raycell D. Baldovino, Sherylyn Ng, Christine Limpin, Victoria Noel, David Tan, Reynaldo Manit, and Alexis Petralba.