Legacy bank exec Alexis S. Petralba falls

5:09 am | Saturday, March 17th, 2012

MANILA, Philippines—A former executive of the failed Legacy-owned banks was arrested and arraigned recently in what the Philippine Deposit Insurance Corp. (PDIC) considers a positive development in its long-drawn legal battle with the banking group.

In a statement released on Friday, the PDIC said Alexis S. Petralba, who is accused of syndicated estafa along with other people behind the Legacy Group, was recently nabbed in Tagbilaran City, Bohol, after eluding arrest for years. The Legacy-owned banks were ordered closed by the Bangko Sentral ng Pilipinas three years ago for allegedly stealing millions of pesos from depositors.

Citing police reports, the PDIC added that Petralba was arraigned days ago at a Regional Trial Court in Danao City in Cebu. He is facing charges of syndicated estafa filed by PDIC and the Bangko Sentral ng Pilipinas.

The accused allegedly siphoned off deposits by using fictitious loans applied for by clients who never existed.

The PDIC has spent P11.7 billion to pay deposit insurance in relation to the closure of the Legacy-owned banks. On the other hand, the amount of realizable assets of the closed banks that the PDIC may generate is valued at only P587 million.

“The PDIC is vigorously going after errant bank officers and owners in order to protect the deposit insurance fund and protect the banking system from illegal machinations,” the deposit insurer said in a statement.

PDIC president Valentin A. Araneta said pursuing cases against people behind the Legacy Group and other unscrupulous individuals involved in smaller banking scams is a priority of the PDIC.

He said the deposit insurer is strengthening its legal team to increase the chances of the PDIC’s triumph in its cases against the Legacy Group.

Regulators said the scam involving the Legacy Group is the biggest so far in the history of Philippine banking.

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Tags: Alexis S. Petralba , Legacy Bank , Legacy Group , Philippine Deposit Insurance Corp. (PDIC) , syndicated estafa

http://profile.yahoo.com/GZHP7GETQTBV3MZMACXQZEHIXE nuj

how about the lbc bank who are the relatives of the distinguished president of the pdic. Valentin Araneta? Sir if you are just in your position to allow your relatives who are the owners of LBC bank, to go scot free, then you should give up immediately your post to avoid the appearance that you are cuddling your criminal relatives such as Carlos Araneta. The period of receivership by the PDIC of the lbc bank had long lapsed from its closure in September 2011. Yet nothing had been done to hold the owners and officers of the bank liable for stealing their depositors hard earned moneys. There is double standard in the application of the laws by pdic. When the bank is a relative of the head, they can evade the law. Sana patunayan ni Valentin Araneta na Matuwid talaga ang daan ni Pnoy.
rickysgreyes

What about the owners of CAP? They stole billions from poor Filipinos.Pnoy, please help these poor folks.Parang Legacy yung CAP

Legacy bank exec Alexis S. Petralba falls

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