Freeze order on bank accounts of pre-need firm extended

MANILA, Philippines - The Court of Appeals (CA) has frozen for 90 days the bank accounts of pre-need firm Phil-Asia Care Plans Inc. upon petition of the Anti-Money Laundering Council (AMLC).

In a resolution, the CA’s former second division has extended the 20-day freeze order for another 90 days.

“Considering the allegations of the petitioner that it is in the process of conducting further investigation on the subject bank accounts for the possible filing of other appropriate legal actions, including the forfeiture of funds in the subject accounts pursuant to the Rule of Procedure in Cases of Civil Forfeiture, and the fact that the subjects of the investigations pertain to accounts and records all over the country including Cebu and Lanao del Norte, the Court finds merit to the motion,” read the CA order.

Last April 3, the Securities and Exchange Commission (SEC) ordered PACPI to stop operations after confirming reports that it was selling and collecting payments for pre-need plans without a license in violation of the Revised Securities Act.

Covered by the freeze order are Phil-Asia’s bank accounts and related web of accounts in Allied Banking Corp., China Banking Corp., East West Banking Corp., Export and Industry Bank Calamba City, Metropolitan Bank and Trust Co., United Coconut Planters Bank, Land Bank of the Philippines, Philippine National Bank and Rizal Commercial Banking Corp.

Also included in the freeze order are a Honda Sedan 2004 and Ford Focus Sedan 2006 under the name of one Joji Afulugencia.

The AMLC will also ask the trial court for permission to look into the pre-need firm’s bank accounts nationwide.

The CA order was signed by Associate Justice Jose Catral Mendoza.

Concurring with the ruling were Associate Justices Portia Aliño-Hormachuelos and Ramon M. Bato Jr.

Based on the records, the SEC made permanent in September 2002 the cease-and-desist order (CDO) against Phil-Asia.

The CDO barred Phil-Asia, its officers, directors or other representatives from offering or selling pre-need plans and from collecting amortizations.

The SEC said Phil-Asia has had no license to act as a pre-need company since 1993 after it failed to meet the capital and other requirements.

It has had no dealers’ license since 1996 and no salesman’s permit and no authority to operate a branch.

The company was authorized only to serve existing plan holders as of Dec. 23, 1993.

In August 2003, Phil-Asia managed to secure a preliminary injunction from the CA preventing the SEC from stopping implementing the CDO.

However, the CA ruled on Sept. 12, 2008 that the SEC did not abuse its authority in ordering the pre-need firm to stop operations. It was Phil-Asia which abused its SEC license when it sold plans without the necessary permit, the CA added.