Court convicts owner of closed Rural Bank of Victoria (Laguna). Inc

July 23, 2020

The Regional Trial Court of Sta. Cruz, Laguna convicted the former owner of the closed Rural Bank of Victoria (Laguna), Inc. on 12 counts of estafa through falsification of commercial or public documents as defined under the Revised Penal Code, the Bangko Sentral ng Pilipinas ( BSP) said Thursday. In its decision dated June 30, the court sentenced Gregorio Aguado to imprisonment of two to six years for each count of estafa, which will be served successively. The court also ordered Aguado to indemnify the Bangko Sentral ng Pilipinas (BSP) the total amount of P3,072,000.00, with interest of six percent per year computed from the time the cases were filed in May 2004 until the amounts are fully paid. The cases arose from a criminal complaint filed in 2002 by BSP before the Department of Justice against Aguado for causing the falsification of the loan and related documents of fictitious borrowers of RB Victoria, and rediscounting the same fraudulent loans with the BSP. Under the New Central Bank Act (Republic Act No. 7653), BSP accepts rediscounting of loans from banks to help them liquify their loan portfolio. Aguado also owned Countryside Rural Bank (Real, Quezon), Inc.; Rural Bank of Agdangan (Quezon), Inc. and Rural Bank of San Narciso (Quezon), Inc. These three banks are closed and placed under receivership of the Philippine Deposit Insurance Corporation.