G.R. No. 112985 - People vs. Romero

The case involves the People of the Philippines prosecuting Martin L. Romero and Ernesto C. Rodriguez for estafa under Article 315, paragraph 2(d) of the Revised Penal Code, in relation to Presidential Decree No. 1689.
The charges arose from a wide-scale swindling operation involving a postdated check and false promises of high investment returns.

Complainant Ernesto A. Ruiz, a radio commentator, was convinced to invest P150,000.00 in Surigao San Andres Industrial Development Corporation (SAIDECOR), a company managed by the accused.
SAIDECOR promised an 800% return on the investment within 15 to 21 days.
Instead of the usual redeemable coupon, Ruiz received a postdated check which, when presented on October 5, 1989, was dishonored for insufficiency of funds.
A discrepancy was noted in the check: the amount in figures read P1,200,000.00 while the amount in words was P1,000,200.00.

On October 25, 1989, an Information was filed against the accused for estafa, followed by another information for violation of Batas Pambansa Bilang 22 on the same day.
Both accused were arraigned on January 11, 1990, pleading not guilty to the separate charges.
Evidence was presented in early 1991 with testimony from complainant Ernesto A. Ruiz, Daphne Parrocho (SAIDECOR collection agent), and later accused Martin L. Romero.
A joint stipulation of facts was entered on November 13, 1992, and the trial court rendered a Joint Judgment on March 30, 1993.
The trial court acquitted the accused in one criminal case (for violation of B.P. 22) but convicted them for estafa under P.D. 1689 in Criminal Case No. 3808.

The trial court sentenced both accused to life imprisonment for the estafa charge and ordered them to pay Ruiz P150,000.00 with interest, plus moral damages.
During the appeal, on March 31, 1993, a notice of appeal was filed. Later, on November 12, 1997, one of the accused, Ernesto Rodriguez, died, extinguishing his criminal and civil liabilities.
The appeal thus proceeded solely against accused-appellant Martin L. Romero.

SAIDECOR, which began operations on August 24, 1989, shifted from a marketing business to soliciting funds from the public, promising exorbitant returns.
The scheme is characterized as a Ponzi or pyramid scheme whereby early investors are paid with funds coming from subsequent investors.
The fraudulent nature of the scheme was evidenced by the dishonored check and the inability of the accused to repay or provide sufficient funds as claimed.

Whether the evidence presented by the prosecution sufficiently established the elements of estafa, particularly:

Whether the accused-appellants’ defense that the corporation had sufficient funds at the time of the transaction is credible and substantiated by evidence.

Whether the trial court properly considered the joint stipulation of facts and other evidence in reaching its conviction for estafa under Presidential Decree No. 1689.

Whether the imposition of the penalty in conformity with PD 1689 and the Revised Penal Code, including the adjustments for a complex penalty, was proper and supported by the evidence.