The president, treasurer, and secretary of ABC Corporation were charged with syndicated estafa under the following Information:
That on or about the 1st week of January 2010 or subsequent thereto in Cebu City and within the jurisdiction of this Honorable Court, the above-named accused, conspiring and confederating together and all of them mutually helping and aiding one another in a syndicated manner, through a corporation registered with the Securities and Exchange Commission (SEC), with intention of carrying out the unlawful or illegal act, transaction, enterprise or scheme, with intent to gain and by means of fraud and deceit, did then and there wilfully, unlawfully, and feloniously defraud Virna, Lana, Deborah and several other persons by falsely or fraudulently pretending or representing in a transaction or series of transactions, which they made with complainants and the public in general, to the effect that they were in a legitimate business of foreign exchange trading successively or simultaneously operating under the name and style of ABC Corporation and DEF Management Philippines, Incorporated, induced and succeeded in inducing complainants and several other persons to give and deliver to said accused the amount of at least P20,000,000.00 on the strength of said manifestations and representations, the accused knowing fully well that the abovenamed corporations registered with the SEC are not licensed nor authorized to engage in foreign exchange trading and that such manifestations and representations to transact in foreign exchange were false and fraudulent, that these resulted to the damage and prejudice of the complainants and other persons, and that the defraudation pertains to funds solicited from the public in general by such corporations/associations.
Will the case for syndicated estafa prosper? Explain. (5%)
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No, the case for syndicated estafa will not prosper. Under Presidential Decree No. 1689, syndicated estafa requires that the swindling or estafa be committed by a
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Quick check
What is the minimum number of persons required to form a syndicate under Presidential Decree No. 1689?
Presidential Decree No. 1689 explicitly requires a minimum of five persons to constitute a syndicate for syndicated estafa.
What happens if an Information for syndicated estafa charges only three corporate officers?
A charge of syndicated estafa fails if fewer than five persons are alleged to have committed the swindling.
If the element of a five-member syndicate is lacking, can the accused still be held liable for simple estafa?
Failure to prove a syndicate does not preclude conviction for simple estafa if its essential elements are present.
Under P.D. 1689, what circumstance increases the penalty for swindling even without a syndicate?
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Why is the presence of five or more perpetrators indispensable in syndicated estafa?
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Learn more about these topics
1. Minimum Syndicate Membership
Under Presidential Decree No. 1689, syndicated estafa requires that the swindling or estafa be committed by a syndicate consisting of five or more persons. The requirement of at least five offenders is an indispensable element of the crime. If the Information charges fewer than five individuals, the offense of syndicated estafa cannot prosper regardless of the amount defrauded or the extent of public solicitation. The presence of five or more co-conspirators defines the existence of a syndicate under the decree.
2. Simple Estafa Liability
When an Information fails to allege a syndicate of at least five persons, the accused cannot be convicted of syndicated estafa. However, if the allegations in the Information sufficiently establish that the accused defrauded victims through false pretenses or fraudulent representations, they may still be convicted of simple estafa under Article 315 of the Revised Penal Code or P.D. 1689. The failure to prove the element of a syndicate does not result in total acquittal if the essential elements of swindling are proven beyond reasonable doubt.
3. PD 1689 Penalties
Presidential Decree No. 1689 increases the penalty for estafa when committed by a syndicate or when the swindling results in the misappropriation of funds solicited from the general public. Even if a syndicate is not formed because fewer than five persons were charged, P.D. 1689 still prescribes higher penalties for simple estafa if the fraud involves funds solicited from the public in general and the amount defrauded exceeds one hundred thousand pesos. The law seeks to severely penalize large-scale swindling schemes.