Bank president accused of estafa caught

MANILA, Philippines - The National Bureau of Investigation (NBI) has arrested a thrift bank president accused of several counts of estafa when he attended a court hearing in Quezon City last June 19.

Patricio Notada was the president of the Homeowners Savings & Loan Bank (formerly known as the Homeowners Savings & Loan Associations Inc. or HOSLA), which was shut down by the Monetary Board – the policy-making body of the Bangko Sentral ng Pilipinas (BSP) – in 1999.

Last March, the BSP’s Office of Special Investigation asked the NBI-BSP Task Force on Bank Fraud Investigation for help in arresting Notada. 

According to the NBI, Notada was charged with three counts of estafa through falsification of commercial documents for rediscounting to the BSP the fictitious loan accounts of Nancy Manicsic, Erlinda Tablang and Bayani Batac.

Notada was also charged for two counts each of estafa and violation of Section 21 of Republic Act 7906 (Thrifts Bank Act of 1995) for overvaluing the collaterals of the loan accounts of Arturo Castillo and Minardo Salvosa and subsequently rediscounting these loan accounts to the BSP.

The BSP released a total of P17.4 million to HOSLA, which issued a promissory note and deed of assignment over the promissory notes and land titles used as collateral by HOSLA’s borrowers.

The NBI said Notada is being tried for these alleged crimes before the Quezon City Regional Trial Court (RTC) Branch 217. Despite seven arrest warrants issued against him on July 30, 2010, Notada remained at large.

The NBI said agents arrested Notada when he was summoned to appear at a hearing at the Quezon City RTC Branch 101 for a separate case. Notada is being held at the NBI headquarters.