Banker gets 40 years for misuse of bank funds

A former banker was convicted of four counts of estafa and sentenced to over 40 years in prison for misusing bank funds, including a P12.6-million emergency loan from the Bangko Sentral ng Pilipinas (BSP).

Found guilty was Hilario Soriano, former president of the defunct Rural Bank of San Miguel (RBSM) who was caught siphoning off bank funds to his personal company, Soriano Holdings Corp.

Court records showed that Soriano misappropriated P21 million in RBSM funds, making unauthorized transfers to his holding company, supposedly for investment purposes.

Soriano had apparently ordered his employees to terminate RBSM deposits and take all the cash from various RBSM branches, which were then used to purchase manager’s checks payable to his holding company.

When depositors started withdrawing their money from the bank, RBSM suffered heavy withdrawals and went to the BSP for an emergency loan to fund the withdrawals.

According to the records of the case, however, the proceeds of the loan were delivered to Soriano’s house instead.

In its decision, the Regional Trial Court of Bulacan said Soriano offered only denials with no supporting evidence that the funds were used for their original intended purpose.

Judge Basilio Gabo Jr. said the money was never returned to RBSM before the bank declared a bank holiday on Jan. 5, 2000 and neither was it used to fund heavy withdrawals of depositors.

"Defense merely involved the denial that P12.6 million emergency loan granted by the BSP was entirely used for personal gain of the accused," Gabo said.

"The defense of Soriano consisted of hazy denials that do not merit any consideration before this court of law against the clear, straightforward and unshaken testimony of prosecution witnesses."

For each count of estafa, Soriano was sentenced to a prison term ranging from 10 years to 14 years or a total of 40 to 59 years imprisonment.

Soriano was also ordered to indemnify the BSP the amount of P12.6 million and the Philippine Deposit Insurance Corp. in the amount of P21 million.

There are still seven pending criminal cases of estafa through falsification against Soriano before different salas of the Bulacan RTC, also involving RBSM.

Soriano is also facing other cases in Batangas and Baliuag involving his other closed bank, the First Coconut Rural Bank in Batangas province.