CA affirms: AMLC can’t touch assets of businessman in pyramid scam

MANILA, Philippines - The Court of Appeals (CA) has affirmed its earlier ruling junking the government’s claim on assets of a businessman tagged in a scam perpetrated by “pyramid scam queen” Rosario Baladjay.

In a two-page resolution, the CA’s 11th Division dismissed the motion filed by the Anti-Money Laundering Council (AMLC) seeking reconsideration of its decision last June that upheld a Manila regional trial court Branch 24 ruling clearing the personal bank account of Juan Carlos Palanca in the forfeiture case.

“We find no cogent reason to warrant an alteration or reversal of the said decision. The instant motion has not raised any new or substantial ground or reason that would call for the reversal of our findings,” read the ruling penned by Associate Justice Stephen Cruz.

Associate Justices Magdangal de Leon and Myra Garcia-Fernandez concurred in this decision.

The CA stood by its findings that the Manila court was correct in lifting the Oct. 9, 2002 freeze order on Palanca’s dollar account worth $38,097.11 in its July 28, 2010 decision, which was affirmed on Sept. 21, 2010, based on his affirmative defense that the AMLC failed to the state cause of action against him when it did not specify his involvement in the pyramiding scam.

The AMLC, through the Office of the solicitor general, insisted that the subject account should have not been touched pursuant to an earlier order issued by the Supreme Court (SC) directing all banks involved to implement the freeze order.

But the CA ruled that while “there might have been existing directive before the (SC) urging banks and all persons acting on their behalf to give full force and effect to the freeze orders but this does not preclude the AMLC from lifting the freeze orders in favor of a party who inclusion thereof has been adequately found to be without basis.”

Palanca was dragged into the controversy after probers alleged that Baladjay’s Multitel International Holding Inc. had invested P51 million in his firm, Cellmode International Inc.

The CA, in April 2012, upheld the conviction of Baladjay for estafa by a Makati court but downgraded the sentence from 12 years to reclusion perpetua imposed by the lower court to four years to 20 years.