Title
People vs. Tibayan
Case
G.R. No. 209655-60
Decision Date
Jan 14, 2015
TGICI, a fraudulent investment company, operated a Ponzi scheme, defrauding investors. Directors Tibayan and Puerto were convicted of Syndicated Estafa, sentenced to life imprisonment, and ordered to pay damages.

Case Digest (G.R. No. 75885)

Facts:

  • TGICI Registration and SEC Action
    • Tibayan Group Investment Company, Inc. (TGICI) was registered with the SEC on September 21, 2001 as an open-end investment company.
    • In 2002 the SEC found TGICI sold unregistered securities and submitted a fraudulent Treasurer’s Affidavit, leading to revocation of its registration on October 21, 2003.
  • Filing of Syndicated Estafa Charges
    • Criminal informations for Syndicated Estafa (RPC Art. 315(2)(a) in relation to PD 1689) were filed against TGICI’s incorporators and directors, including Palmy Tibayan and Rico Z. Puerto.
    • Arrest warrants issued; only Tibayan and Puerto were apprehended; co-accused remained at large.
  • Private Complainants and Investment Scheme
    • Private complainants (Hector and Milagros Alvarez; Clarita Gacayan; Irma Ador; Emelyn Gomez; Yolanda Zimmer; Nonito Garlan; Judy Rillon; Leonida Jarina; Reynaldo Dacon; Cristina Dela Peña; Rodney Villareal) were enticed by promised high monthly interest (3–5.5%).
    • Complainants received Certificates of Share and post-dated checks which were dishonored; TGICI reassured payment but eventually closed down without remitting funds.
  • Defense of Accused-Appellants
    • Both denied conspiracy; Puerto alleged forgery of his signature in TGICI’s Articles and claimed he ceased being director in January 2002.
    • Tibayan likewise denied ever being incorporator or director and alleged forgery of her signature.
  • RTC and CA Proceedings
    • Regional Trial Court (Branch 198, Las Piñas City) handed down six separate decisions (Dec. 4, 2009; June 24, 2010; Aug. 2, 2010; Aug. 5, 2010; Jan. 21, 2011; Aug. 18, 2011), convicting Tibayan of 13 counts and Puerto of 11 counts of simple Estafa under RPC 315(2)(a) in relation to PD 1689. Sentences ranged from prision correccional to reclusion temporal and ordered various damage awards.
    • Court of Appeals (CA) consolidated appeals and, by Decision dated June 28, 2013, modified convictions to Syndicated Estafa, imposed life imprisonment for each count, and increased actual damages (notably Clarita Gacayan’s award from ₱1,300,000 to ₱1,530,625.90 plus US$12,000).

Issues:

  • Whether Palmy Tibayan and Rico Z. Puerto are guilty beyond reasonable doubt of Syndicated Estafa defined and penalized under Item 2(a), Paragraph 4, Article 315 of the RPC in relation to PD 1689.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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