The Regional Trial Court (RTC) Branch 20 of Imus, Cavite issued a warrant of arrest on September 15, 2014 against Banlee C. Choa, former Chairman and President of the closed GMA Rural Bank. Mr. Choa was charged for estafa by the Department of Justice (DOJ) based on a complaint filed by the Philippine Deposit Insurance Corporation (PDIC) before the DOJ Task Force on Financial Fraud. Choa remains at large. PDIC is requesting the public’s assistance for any information that may assist in the arrest of Mr. Choa. The public may contact the PDIC Investigation Department at the 9th Floor, SSS Bldg., 6782 Ayala Ave. corner V.A. Rufino St., Makati City or call (02) 841-4120, (02) 841-4124 or (02) 841-4125.

Based on the criminal information filed by the DOJ before the court, Choa is accused of estafa committed when he, as President/Chief Executive Officer/Chairman of GMA Rural Bank, misappropriated the funds of the bank in the amount of P748 million by creating a special division in GMA Rural Bank purposely to grant unsecured loans to corporations and other business entities owned and controlled by Choa and/or members of his immediate family, and upon receipt of the said amount through the said corporations, Choa used the same for himself or for his own benefit.

Per the complaint of PDIC filed with the DOJ, the special division of GMA Rural Bank that granted unsecured loans was referred to as the “Executive/Extension Office” and the Choa corporations involved are Tri-B Corporation, Hauskon, Landblazers and Landprimers. PDIC’s complaint likewise charged Ma. Corazon T. Choa, former GMA Rural Bank Director and director and stockholder of various Choa corporations; and the other directors and stockholders of said corporations, namely: Cherry Lynn C. Madarang, Carson T. Choa, Celine T. Choa, Cendy T. Choa, Carter T. Choa, Carvin T. Choa and Carlo T. Choa for estafa. PDIC charged Madarang and Cendy T. Choa due to their active involvement in the management of GMA Rural Bank and its Executive/Extension Office.

Meanwhile, the other respondents were officers of various Choa corporations who, according to witnesses, scrambled for various bank documents prior to the bank’s closure to hide the operations of the Executive/Extension Office. The DOJ, however, in its resolution, cleared them of the charges. PDIC has filed a Petition for Review of the decision to dismiss the charges before the Office of the Secretary of Justice.

The PDIC said that it will continue to pursue legal actions against bank officials and personnel who commit fraud or who engage in unsafe and unsound banking practices for the benefit of depositors and the creditors of closed banks, and protect the Deposit Insurance Fund, PDIC’s funding source for payment of insured deposits.

GMA Rural Bank was placed under PDIC receivership in February 2011.