G.R. No. 185891 - Cathay Pacific Airways vs. Reyes

The case involves accused Nellie Cabais y Gamuela, charged with illegal recruitment in large scale by a syndicate and two counts of estafa.
The filing of the information was made on September 28, 1995, by Prosecutor Alfredo R. Centeno in the Regional Trial Court (RTC), Baguio City, covering several criminal cases:

Criminal Case No. 13997-R – charging illegal recruitment in large scale resulting to economic sabotage.
Criminal Case No. 13999-R – charging estafa against complainant Joan Merante.
Criminal Case No. 14000-R – charging estafa against complainant Nancy Oidi.

Out of the three accused (Nellie Cabais, Harm Yong Ho, and Anita Forneas), only Cabais and Harm Yong Ho were arrested while Anita Forneas remained at large.

In February 1994, complainant Joan Merante met Cabais in Maharlika, Baguio City; Cabais claimed connection with the licensed Red Sea Employment Agency (RSEA) for overseas employment in Korea.
In April 1994, Cabais similarly met complainant Nancy Oidi at a restaurant, representing herself as a legal recruiter employed by a licensed agency from Manila.
Other individuals, such as Florentino Balanon, Jr. and Imelda Mortera, were also approached by Cabais regarding job opportunities abroad.

Various complainants paid placement fees and other charges (including passport fees) for processing their application forms, bio-data, medical clearances, and other prerequisites.
Specific payments included:

Joan Merante paid fees in two separate transactions amounting to P20,000.00 and additional sums for passport processing.
Nancy Oidi and Imelda Mortera each made payments for their placement fees.
Florentino Balanon, Jr. paid fees both in Baguio City and in Manila.

After complying with the processing requirements, the complainants were told to await deployment to Korea.
Months later, upon inquiry with the Philippine Overseas Employment Administration (POEA), the complainants discovered that neither Cabais, Forneas nor Harm Yong Ho held the requisite licenses or provincial authority for recruitment, confirming the fraudulent nature of the promised employment.
The complainants then demanded the return of the money advanced, but subsequent attempts to locate Forneas and Harm Yong Ho were unsuccessful.

At the arraignment on January 31, 1995, Cabais pleaded not guilty to all charges.
Trial proceedings were limited to Cabais given that Harm Yong Ho had already been transferred to serve a separate life sentence in another illegal recruitment case, and Forneas was not apprehended.
On February 6, 1997, the RTC rendered its decision convicting Cabais in Criminal Case No. 13997-R for illegal recruitment and in Criminal Cases No. 13999-R and 14000-R for estafa, while acquitting her in Criminal Case No. 14001-R due to insufficient evidence.

Cabais asserted that she was merely an employee of RSEA and not the principal recruiter, contending that the recruitment operations were managed by her superior, Anita Forneas.
She admitted to receiving payments from the complainants but maintained that such monies were promptly turned over to her employer, and hence, there was no personal appropriation of funds.
Her defense further argued that mere participation as an employee should not incur the full criminal liability for offenses of illegal recruitment and estafa.

In Criminal Case No. 13997-R, a conviction for illegal recruitment in large scale with a penalty of life imprisonment and a fine of P100,000.00, with appropriate credit for preventive detention.
In Criminal Case No. 13999-R, an indeterminate sentence ranging from six (6) months and one (1) day of prision correccional (minimum) to over seven years, eight (8) months and twenty-one (21) days of prision mayor (maximum) for estafa, plus the payment of actual damages of P40,000.00 to Joan Merante.
In Criminal Case No. 14000-R, an indeterminate sentence for estafa against Nancy Oidi, with a similar range and actual damages of P21,000.00.
An acquittal in Criminal Case No. 14001-R, where the prosecution failed to prove the charge of estafa against her in connection with Daisy Tostos.

The decision of the RTC was affirmed by the appellate court on the ground that the evidentiary record supported the trial court’s findings regarding the elements of illegal recruitment and estafa.

Whether accused Cabais can be held liable for illegal recruitment in large scale, despite her contention that she acted merely as an employee of RSEA rather than as the principal recruiter.
Whether the receipt and handling of placement fees by Cabais, even if purportedly turned over to her employer, constitute the commission of estafa due to the act of deceit and misrepresentation.
Whether the elements of illegal recruitment—recruitment activities, lack of proper licensing, and involvement of three or more persons—are satisfied in this case.
Whether the imposition of indeterminate sentences, as well as the method of calculating penalties under the Indeterminate Sentence Law, is proper given the amounts defrauded in the two estafa counts.
Whether the testimony of the complainants, which was positive, consistent, and corroborated by documentary evidence (receipts and certifications), suffices to overcome the accused’s denials.