The Anti-Money Laundering Council (AMLC) announced yesterday that Branch 167 of the Pasig Regional Trial Court handed down the first ever conviction against Eric Allagadan, branch manager of Union Bank in Annapolis, Greenhills.
Allagadan was ordered to pay P1.5 million or face a prison term of not less than four years and not more than six years.
It was revealed that Allagadan facilitated the laundering of some P14 million that was reportedly hijacked by a criminal syndicate from Mitsubishi Corp.
Court records revealed that in March 2002, Mitsubishi had imported cargo from Japan to Manila for its project in Iligan and had paid taxes and duties amounting to P15.92 million.
However, the amount was never deposited to the account of the Bureau of Customs (BOC) and was instead deposited into the account of one Mario Misa.
AMLC executive director Vicente Aquino said it was Allagadan who facilitated the laundering of the funds while Misa and several others were also accused as principals of the criminal act of money laundering.
According to Aquino, however, Misa and his cohorts were still at large and only Allagadan actually faced trial at the Pasig court. Along with Misa, also accused were Michael Lafuente, Reynaldo Nicolas, Rex Jao, Jesus Silverio and Luisito Estanislao, all at large.
"Under our jurisprudence, flight is indicative of guilt," Aquino said.
When the transaction was reported as suspicious, Aquino said the AMLC immediately launched an investigation in full cooperation of Union Bank which he said conducted its own internal investigation into Misa’s account.
Court records showed that a watchful bank teller, identified as Irma Balin, caught the irregularity in the transaction since the check that was deposited into Misa’s account was a crossed check and could have only gone to the account of the BOC.
"Accused Allagadan’s claim that he merely accommodated a long time client in his desire to increase the cash level of the bank is flimsy and does not inspire belief," the court said.
Aquino said that although the principals were still at large and have not been charged, the conviction of Allagadan was a landmark precedent-setting case in the country’s financial history.
"This is the first time we got a conviction under this new law and we are glad of it," Aquino said.
According to Aquino, there were over 20 other money-laundering cases still pending in various courts, some already in the advanced stages of trial.
Aquino said the cases were also pending against Misa and other individuals identified as his cohorts because the funds stemming from the Mitsubishi check to the BOC were eventually deposited into other accounts.
"Ultimately, Mitsubishi had to issue another check and pay BOC again," Aquino said.
He added that the AMLC was able to freeze the accounts that received the deposits and only about P1 million was unaccounted for after being withdrawn.
"But the balance is intact and the bank is already trying to resolve this, but of course the money from the check should go back to Mitsubishi," Aquino said.