G.R. No. 71523-25 - Santos y Ramirez vs. Sandiganbayan

Petitioners Rolando Santos y Ramirez, Jesus E. Estacio, Alfredo R. Fajardo, Jr., and Marcelo S. Desiderio were convicted by the Sandiganbayan for estafa through falsification of public documents in three separate but consolidated criminal cases (Nos. 5949, 5950, 5951).
The Sandiganbayan decision was dated July 19, 1985, finding them guilty as co-principals and meting variant penalties and indemnifications to affected banks.
The cases involve a syndicate orchestrated by Felipe Salamanca that used “switching” and “pilferage” schemes at the Central Bank’s Clearing Center to defraud several banks of a total of ₱9,000,000.00.
The Sandiganbayan sentenced each accused to indeterminate penalties ranging from prision correccional to prision mayor with fines and indemnifications.

The switching scheme involved substituting checks to cause clearing delays, allowing withdrawals before dishonor notices were issued.
The pilferage scheme entailed opening accounts at BPI-Laoag and Citibank-Greenhills where BPI checks were deposited; Central Bank employees altered clearing statements and manifests to omit these checks from clearing documents, making them appear valid and funded.
This enabled withdrawals of the full amounts from Citibank amounting to ₱9 million, which were then distributed among syndicate members.

On April 15, 1982, the Tanodbayan filed informations for estafa and falsification against several accused, including petitioners and other private individuals and public employees.
A joint trial was ordered; some accused were discharged to become state witnesses, including Valentino (bookkeeper) and initially Estacio (janitor-messenger). Estacio later chose to revert to accused status for family safety.
Some accused remained at large, others died or were acquitted due to lack of evidence.
The Sandiganbayan convicted petitioners Estacio, Desiderio, Santos, and Fajardo, while some co-accused were acquitted or had their cases archived.
Petitioners filed motions for reconsideration denied by the Sandiganbayan and then timely filed separate petitions for review on certiorari before the Supreme Court.

Testimonies from sixteen witnesses including Central Bank officials, BPI employees, Citibank personnel, and NBI agents.
Documentary exhibits comprising bank records, deposit slips, clearance statements, manifests, checks, signature cards, and other bank documents showing the alteration of documents and the flow of money.
Extrajudicial confessions of co-conspirators Valentino and Estacio describing the details of the scheme and implicating petitioners.

Denials of illegal participation by petitioners, including claims of legitimate business transactions and lack of involvement in bank account opening or document tampering.
Testimony of Estacio alleging coercion and intimidation during custodial investigation by NBI agents.
Explanations of petitioners Santos and Desiderio about their incidental or non-involvement in the criminal scheme.
Petitioner Fajardo waived his right to testify.

Was the Sandiganbayan correct in admitting the extrajudicial confessions of petitioners Estacio and Valentino despite the alleged violation of their right to counsel?
Was the discharge of Valentino to become a state witness proper under the rules?
Was the conspiracy among petitioners, making them co-principals in the crimes, sufficiently proven beyond reasonable doubt?
Should petitioners Estacio and Santos be held liable as co-principals or merely as accomplices?
Should petitioner Fajardo be held criminally liable given the evidence presented?
Was the penalty fixed by the Sandiganbayan consistent with applicable laws on complex crimes and mitigating circumstances?