Lawyer gets 20 years for pyramiding scheme

CEBU, Philippines - A lawyer engaged in a “pyramiding scheme” was sentenced yesterday to suffer a maximum penalty of 20 years imprisonment after he was found guilty of estafa.

Regional Trial Court Branch 6 Judge Ester Veloso found lawyer Luis Diores, Jr. guilty of estafa for employing “fraud and deceit upon gullible people to convince them to invest” in his lending corporation.

On top of the maximum 20 years imprisonment, the court also ordered him to pay the complainant, Cecilia Gasendo/or Romy Gasendo, the sum of P440,000 plus legal interest to be computed from September 17, 2004 until such time that the amount is paid in full.

The case stemmed from a complaint filed by Gasendo after their investment in the Pacific Lenders, Incorporated where Diores is executive vice president and president vanished. The complainant said that sometime in 1998 she invested a total of P1 million to Diores with a promise of high interest rate.

Gasendo said she initially invested P600,000 and then added P400,000 where in she was given a memorandum of agreement and a confirmation of her placement. Diores issued post-dated checks to her.

However the checks for the supposed interest of her investment including that of the return of the capital bounced for reason that the account was already closed. Gasendo said they have sent several demands to Diores but the latter is nowhere to be found.

The court decided the case based on the evidence presented by the complainant after the accused failed to appear despite due notice. The court considered Diores to have waived his right to cross-examine the witnesses as well as offer his evidence.

According to the court, the evidence of the prosecution established a kind of “Ponzi scheme.”

The scheme is an investment swindle named after Charles Ponzi who first promoted it in 1920s which high profits are promised from fictitious sources and early investors are paid off using funds raised from late investors.— Fred P. Languido/MEEV   (FREEMAN NEWS)