Investors file case vs Legacy owner, 13 others

MANILA, Philippines - With the Legacy Group’s promise of huge returns on investment now shattered, former investors filed yesterday a syndicated estafa case against the troubled firm’s owner Celso de los Angeles and 13 others including his wife and son.

The 12 investors, led by Francisco Obsenares, filed the case with the Department of Justice against De los Angeles, his wife Ma. Concepcion, son Nicolo Martin, mother Purita, and brother Victorino. The nine others charged were Christine Limpin, Madeline Cobarrubias, Norman Tiongson, Carolina Hinola, Rita Maniacup, Basilio Carpio, Ariel Isberto, Agnes Santiago and Namnaman Pasetes Santos.

In a 30-page complaint, the group said the Legacy owner and officers committed “illegal and fraudulent acts” in violation of Presidential Decree No. 1689 or the law against estafa.

The petitioners claimed they were victims of a scheme in which “drawers of checks issued in payment of investment assigned by the investor did not belong to the assignee but to yet another company of respondents.”

They described the scheme as “rob-Juan-to-pay-Pedro” and likened it to the high-level fraud committed by Charles Ponzi, who duped thousands of New England residents into investing in a postage stamp collection in the 1920s.

Petitioners’ lawyer Joel Ferrer explained that under Legacy’s scheme, money from new investors was used to pay off earlier investors until the whole system collapsed.

He alleged that the company held off its inevitable collapse by organizing new corporations, which he identified as Legacy Consolidated Asset Holdings Inc., Fusion Capital Corp., Conventional Realty Corp., Galaxy Realty and Holdings Inc., One Realty Corp., Shining Armour Property Inc., Legacy Card Inc., Legacy Consolidated Plans Inc. and Legacy Motors Inc.

“The above enumerated companies are but conduits organized to recruit investors and, depending on availability of funds, issued checks purportedly in payment of the investments made which were ultimately dishonored because the entire scheme collapsed,” the charge sheet read.

The companies eventually folded up after filing voluntary dissolution with the Securities and Exchange Commission.

The complainants, aside from Obsenares, are Ramon Suarez and Indian nationals Narain Ladharam, Sanjay Mahibubani, Haresh Vasandani, Haresh Manwani, Rocky Manwani, Shanker Ramchandani, Sita Ramchandani, Pran Ramchandani, Asha Shamdasani and Kamlesh Shamdashani.

It was the first criminal complaint filed against De los Angeles. The Bangko Sentral ng Pilipinas earlier lodged criminal cases against officers and employees of four rural banks under the Legacy Group but De los Angeles was not among those charged.

BSP Governor Amando Tetangco said 116 counts of falsification of public and commercial documents along with two counts of false statements have been filed against 18 officers, employees, and agents of four rural banks under the Legacy Group.

The banks were the Rural Bank of Parañaque, Rural Bank of DARBCI in South Cotabato, Rural Bank of San Jose in Batangas, and Bank of East Asia.

Central bank officials said De los Angeles was not included in the case because he was not listed as an official or stockholder of any of the Legacy group’s companies.

But Justice Secretary Raul Gonzalez said a DOJ panel would also try to determine if De los Angeles could be held liable.

 NBI invitation

Meanwhile, the National Bureau of Investigation has asked eight members of the Legacy board and officers to appear before NBI investigators on Feb. 19 at 1:30 p.m.

Special Investigator Darwin Francisco said the subpoenaed officers were Elvira Garcia, Madeline Cobarrubias, Cecille Invencion, Monina Vierneza-Dio, Bishop Ignacio Soliba, Elvira Nebre, Edgardo Marasigan, and Josefina Castañeda.

Francisco said the NBI has also requested the Bureau of Immigration to issue a hold departure order against the Legacy officers.

The BI earlier placed De los Angeles on the hold departure list.        – With Sandy Araneta