Swindling and fraud issues hound Legacy Group and Rural Bank of Paranaque

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The Legacy Financial Group and the Rural Bank of Paranaque (also called Banco Paranaque) of the famous double-your-money time deposit programs are now being thrown into the limelight following recent news articles that mention the bank’s supposed involvement in swindling, fake certificate of time deposits (CTDs) and extortion. The bank has come clean and denied all accusations.

Who between the accused and the accusers is telling the truth? How will this affect the high-yield time deposit placements of the bank’s depositors? Read the news stories below which were published in some local dailies and judge for yourself.


SEC clarifies confusion stirred by “extort” group

  • From the People’s Tonight, published on Wednesday, June 13, 2007

THE Securities and Exchange Commission yesterday confirmed the Bangko Sentral ng Pilipinas statement that it is the sole agency that could extend the life of a bank.

In an interview, Atty. C.A. Lukban, Securities and Exchange Commission board secretary, said the BSP is the primary regulatory agency of banks and not the SEC.

“A bank is a special corporation, that’s why for a bank to extend its life, it would need a Certificate of Authority from the BSP, before the SEC can proceed with its role on this regard, which is merely ministerial,” Lukban clarified.

“The right thing to do for a bank, meanwhile, is to make amendments to the articles of incorporation and make sure that these have been approved by the board of directors before filing it with the SEC, “ Lukban added.

The issue surfaced after an alleged group of extortionists filed a complaint with the BSP regarding the Rural Bank of Parañaque, insisting that the bank failed to extend its corporate life.  The group was reportedly asking millions of pesos from the bank so they would not publicize their complaint.

Tonight, however, obtained a copy of a Certificate of Authority from the BSP to extend the life of the RBOP.

The BSP also released a statement saying the agency would be more cautious in accepting complaints to avoid being dragged into the operation of certain criminal elements.

The SEC joined BSP in clarifying the issue after two alleged members of the extortion syndicate, lawyers Ramon Diño and Felipe Arcilla, released a joint statement saying that the “BSP has no power to extend the life of a bank.”

Diño was suspended by  the Supreme Court before for grave misconduct and was issued multiple warrants of arrest for extortion and libel by Branches 88 and 213 of RTC Quezon City and Mandaluyong, respectively.

“It is much the same thing with schools which like banks are also special corporations, that a school may extend its life only after the Department of Education issues a Certificate of Authority which is the primary requisite and the SEC received the certification and the amendments to the articles of incorporation duly approved by its board, ” Lukban said. “In such instances when these are complied with, formality lang kami. I hope this clarifies everything.”

In a joint statement, Diño and Arcilla stressed that only the “SEC may amend the articles of a corporation in the Philippines, including a bank.  The BSP may only endorse, but it has no power to extend its life. And up to now, 38 days after its expiration, the Rural Bank of Parañaque has yet to extend its life by the SEC.”

Both lawyers said “this is the clear provision of the Corporation Code and the General Banking Act of 2000. The counsels headed some 28 complainants in their administrative complaints with the Bangko Sentral against Celso delos Angeles and 20 other officials of the Rural Bank of Parañaque.

“This alleged BSP senior official should consult her legal department first before expressing her opinion and arrogance. She should identify herself. There is nothing to fear when there is nothing to hide,” said the lawyers.

Arcilla and Diño stressed that they do not represent Bulos and Gen. Saavedra.

“We are not an extortion group. We have not fought nor sued any other bank except the RBOP and its affiliated banks because of their multibillion-peso double-your-money scam. What we are demanding is for them to return the hard-earned money that they have taken thru the issuance of  “fake certificate of time deposits (CTDs) to the innocent clients of Scholarship Plan Phils Inc., Legacy Pension Plans, Legacy Consolidated Plans Inc., All-Asia Consolidated Plans, Center Bank of Alabang and other CTDs issued by Legacy agents and their affiliated rural banks nationwide.  Thousands of these CTDs are bogus. We can prove it,” said the lawyers.


Extort group irritates BSP

A SENIOR official of the Bangko Sentral ng Pilipinas has expressed disgust over the statements issued to media by an alleged extortion group preying on banks.

The official, who requested anonymity, said in an interview the extortion group, uncovered by the National Bureau of Investigation, is falsely using the name of the BSP to harass its prospective victims.

“Anybody may file a complaint at the BSP against a bank, but what is irregular is that the alleged extortionists would now use the complaint to threaten their victims to give in to their demands or they would publicize their complaint, regardless if the complaint would hold water or not,” said the official.

The official was referring to an article published last Saturday, wherein former banker Honorio C. Bulos, who was blacklisted by the BSP for banking violations, issued a statement  allegedly in an attempt to destroy the image of the Rural Bank of Parañaque.

“How can anyone in his right mind do that? A bank is a public trust and it thrives on its image and confidence of the depositors. If anyone has an axe to grind, he or she better use the courts and not just drag the name of the BSP and a banking institution for their personal squabbles,” the official said.

“We are extra cautious in accepting complaints at the BSP so as to protect establishments from opportunists, poseurs and extortionists,” the official added.

The news item also quoted lawyer Felipe Arcilla, allegedly a member of the extortion group, saying the BSP has no jurisdiction over the extension of a bank’s corporate life.

“That man should review his law books or should shift professions,” the BSP official said. “By golly! We are talking of extending the life of a bank, by legal and common sense the BSP should be involved.”

The extortion group’s members reportedly include Victor Fortuna, who was arrested in an entrapment by the NBI for extortion and grave threats, as well as Shahara Abdullah and lawyer Ramon Dino, who were issued warrants of arrest for extortion and libel by Branches 88 and 213 of RTC Quezon City and Mandaluyong, respectively.

The supposed extortion gang is allegedly demanding millions of pesos from RBOP and spreading false information that its corporate life has expired.

“We (BSP) have just given the subject bank a certificate of authority to extend its corporate life for another 50 years last April 30. What do people expect? Of course, everything has to undergo a process,” the official added.


Paranaque bank execs under fire for “swindle”

  • From the People’s Tonight, published on Saturday, June 9, 2007

Former Banco Paranaque president/owner, Honorio C. Bulos Jr. and retired Southcom chief Maj. Gen. Ramberto B. Saavedra have filed complaints before the Bangko Sentral ng Pilipinas as well as the Securities and Exchange Commission, denouncing the “existence of a large-scale swindling syndicate involving a number of RBOP senior officials.

The complainants added that the documents submitted by the RBOP officials to the BSP and the SEC calling for the amendment of its articles of incorporation were made behind their backs, as these did not contain the required stockholders and board approval as provided by law.

Bulos and Saavedra alleged that such move placed them “all the more in the minority” and reportedly enabled the RBOP management to cover up irregularities affecting the bank.

The ex-BP president claimed the group of Celso delos  Angeles Jr. took over the bank in 1997 thru misrepresentation. In his letter to the Bangko Sentral dated June 5, 2007, Bulos stated, “as former owner, president and majority stockholder of the Rural Bank of Paranaque, I simply cannot, in conscience, just keep my mouth shut while the bank that I helped organize and establish in the early 1980s thru sweat and tears ‘will just go to the dogs’.  I have suffered in silence all these years just so that we can avoid a scandal, hoping against hope that things may change for the better as people can always reform – “all for the sake of the bank that I have cared for the best years of my life, including now.  But reaching the twilight years of my life, I am morally convinced that this evil must be put to a stop NOW even if it costs my life!”

Bulos and Saavedra complained that the Banco Paranaque has not called any board or stockholders meeting for the past years. They also expressed concern on the various complaints that have been filed against the bank’s officials regarding lending operations and time deposits.

In a separate development, Atty. Felipe Arcilla, counsel of the 28 complainants who recently filed an administrative case with the BSP, declared that contrary to the allegations contained in a news item by the lawyers of Delos Angeles, only the SEC can extend the life of a corporation (including a bank) in the Philippines.

“The Bangko Sentral can only endorse the extension, but it has no power to extend it. Up to this time, 38 days after its expiration, the SEC has not yet extended the life of this bank,” added Arcilla.


Parañaque bank counters false info

A Tonight article with the headline “Parañaque bank in hot water,” which was published yesterday involving the  Rural Bank of Parañaque and Legacy,  is part of the ongoing attempts of a group to extort money from the two business entities.

In a press statement, the  Tiongson and Antenor Cruz Law Office disclosed  that the false information being spread by lawyer Ramon S. Dino, Shahara Abdullah, Victor Fortuna and lawyer Felipe Arcilla was part of the group’s alleged attempt to extort and victimize the bank and its major stockhold law firm.

“We take this opportunity to correct the false information and misrepresentation contained in the news story.”

“Neither Dino, Abdullah or Fortuna are depositors/clients of RBP and Legacy yet they filed complaints against these institutions claiming as such while demanding a pay-off.

“When RBP et al refused their demands, letters and e-mails purportedly coming from various NGOs were circulated, going so far as to threaten the BSP governor in case he does not kowtow to their ‘demands,’’ they added.

The firm also denied that RBP’s corporate life already ended, and even showed a Certificate of Authority from the Bangko Sentral ng Pilipinas through Dir. Leilani M. Canullas on April 30, enabling the bank to register its amended articles of incorporations, including the extension of its corporate life for another fifty (50) years.

The law firm also urged the public “to be vigilant in distinguishing between valid complaints against entities as opposed to extortion attempts and other criminal designs of these individuals.”

The National Bureau of Investigation uncovered the  syndicate victimizing banks and the personalities behind them.

Involved in this syndicate are Ramon Dino, Abdullah Shahara and Victor Fortuna.

Warrants of arrest for the arrest of the  three suspects were issued by the Regional Trial Courts of Makati Citry, Mandaluyong and Quezon City,

Dino was a lawyer who was suspended by the Supreme Court for gross misconduct, while Shahara  owns a recruitment agency whose license has been cancelled by the Philippine Overseas Employment Agency  because of illegal recruitment.

Fortuna, on the other hand, had been arrested by the NBI last year because of grave threats.

It was learned that the group uses dummy organizations like the Katipunan ng mga Aping Pinoy at Anti-Graft League of the Philippines. They send out malicious letters with fake return addresses,

According to Jerry Abiera of the NBI, the group’s modus operandi is to infiltrate a business organization and then collect information and data regarding the company’s business and its clients.

Valuable information such as personal secrets, dissatisfied clients and past scandals are then used to blackmail the company and its owners.

“These information are used to extort millions of pesos and if the subject fails to pay, the syndicate will send out white papers or poison letters which will be sent to the business owner’s associates through mail, e-mail or text messages,” Abiera said.

He added that should their victims give in to the group’s demand, this was the start of its effort to fleece them until they go bankrupt.


Syndicate extorting banks uncovered

THE National Bureau of Investigation has uncovered a syndicate allegedly victimizing banks.

The members of the group were identified  as Ramon Dino, Abdullah Shahara and Victor Fortuna.

Warrants of arrest for the three were issued by the Regional Trial Courts of Makati  Mandaluyong and Quezon cities.

Dino was a lawyer who was disbarred by the Supreme Court for gross misconduct while Shahara owns a recruitment agency whose license has been cancelled by the Philippine Overseas Employment Agency for  illegal recruitment.

Fortuna, on the other hand, was arrested by the NBI last year because of grave threats.

It was learned that the group uses dummy organizations like the Katipunan ng mga Aping Pinoy at Anti-Graft League of the Philippines. They send out malicious letters with fake return addresses.

According to Jerry Abiera of the NBI, the group’s modus operandi is to infiltrate a business organization and then collect information and data regarding the company’s business and its clients.

Valuable information such as personal secrets, dissatisfied clients and past scandals are then used to blackmail the company and its owners.

“These information are used to extort millions of pesos and if the subject fails to pay, the syndicate will send out white papers or poison letters to business owner’s associates through mail, e-mail or text messages,” Abierra said.

He added that should their victims give in to the  demand, the group will  fleece them until they go bankrupt.


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21 thoughts on “Swindling and fraud issues hound Legacy Group and Rural Bank of Paranaque”

  1. all the check i receive in banco paranaque are all good good good !!! long live banco paranaque!! may GOd protect this bank and prosper abudantly

  2. I am a depositor of the bank and so far have not encountered any problem with the checks issued! I even recommend the bank to friends, and looking forward to investing more money, though they said 20% p.a. is not available anymore and only offers 18% p.a. this time.

  3. I personally know somebody who has an investment with legacy group for 7 years now. I have talked to them regarding issues of swindling. They said, they have NEVER encountered any problems with all their transactions with the said firm.

  4. In my 6yrs of investing my money with RBOP,I’ll never experience any problem or delays when it comes to my interest, I actually renew my two matured 5yrs TD for another 5yrs but now it is at 18% P/A,that still fine with me coz I want also the bank to earn from my deposit.I want to congratulate the management and all the employees of RBOP for job well done.

  5. In any investments there are risks. Legacy is a legitimate investment institution. It is so far the best and the wisest way to invest in this institutution. It has already helped a lot of people. I invested all my money in Legacy and it help me a lot. They are very reliable and truly they honor their commitments to you. I suggest you try it and experience your investments double and be able to live a very comfortable life with less worries. Do not believe all the rumors. They are just envious because we are successful and they are not. Normally people who are failures think negative things. That is why they fail. Go ahead and invest your money in Legacy. They have enough cash to back up your investments. As we say, ” NO GUTS, NO GLORY”

  6. all i can say of this bank to please return my money now,,,im one of the dpositor of this bank in tagblaran city,,then after 1 yer i decided 2 withdrwn my money,,they issue a 1week post dated check,Kasi wala silang PERA,,,,,and until now 1 month at sarado na yung bangko nla wala pa ring LAMAng ang CHEKE!!!!!

  7. I just got a call today from a friend of mine who referred me to put my money (my children’s college fund actually) to a 5-year TD at Banco Paranaque. I was told that the bank declared a “bank holiday” since yesterday, monday 8 december. No one from the bank is answering phone calls for explanation why the bank is closed. what is going on? last month the bank was even encouraging people to put some more money as they have increased the interest to 20% from 18%. last friday there were still people at the ortigas branch according to this friend of mine. suddenly, they are closed!!!!

  8. My mother availed Pension S plan, (5 years to pay and 5 years to wait) at consolidated plans 10 years ago. Last June 2008 was the maturity date but after calling the claims department a month earlier, they informed me that by that time the only checks they were processing was the pension plans that matured january of the previous year (2007) which means that the matured plan that I (as a beneficiary) have might be processed the next year (2009). Until I was told to inquire for the agent of the said pension plan about the “double your money” time deposit that will give me 12 checks in total for 3 years. so i enrolled it thinking that at least we have a check to deposit every 3 months but to my dismay two days upon opening an account and depositing it to a bank, the bank informed me via text message to call the bank’s branch for a returned check. I was very disappointed of course not only for its timing but for the lame reason that they told me that “their boss terminated the account thats why the check returned”. They didnt even give us their reassurance that after what happened we can still claim the money. I really dont know if the reason for the account’s closure was because of the said “extort group” or is it just them making their story of this extort group. Im still hoping that they could explain this returned checks clearly and that they can reassure the people that invested in them that we can still claim what is supposed to be ours. i’ll just post my update here again.

  9. i was a depositor of banco paranaque for about 4 years, its been a good bank to me, and i may say that everything has its end, and for me, im still very thankful to the management and staff of this bank, for giving us the consideratel return of oiur investment. It’
    s been a very helpful years for us doing business with them. Thank you thank you… to Sir Oliver Ramos whose been very good to us, thank you and God Bless us all…goodluck!!

  10. I’ve seen their plans for the past years. I’ve even warned friends who had invested that the groups’ scheme is similar to the Ponzi scheme(pyramiding)except that their is a supposed PDIC on your deposits. But PDIC covers only bank deposits and TDCs are not included. Unless you have a passbook, I dont think PDCs are covered by PDIC. And just like any other pyramiding, the losers are the late comers or those who put in bigger additional investments. Kawawa mga nalugi and those who entrusted their hard earned money w/ these banks.

  11. is this all true? please inform me aboput this. my parents just died and we had our time deposit last year, please e-mail me… i need infos. thanks… and sana maaus na toh…

  12. GOSH!!! BALIK NYO PERA K!!! LEGACY MISLEAD US!!! nung una, sabi change of bank lang dhl hanap p sila bank can release 5M/mos? kasinungalingan!!! un pala, tlagang they have plans for closure n!!! now, wash hands n sila… at SEC n dw bhala mag refund pera namin? how come? wherein a trust cant be release until its maturity… haaay… maawa n kayo sa family namin! balik nyo n ung ininvest namin?!? P L E A S E LANG!!!! 🙁

  13. viking says:

    hopefully we can get the money asap. pdic insured us that they will shoulder upto 250T for individuals, P250T accumulated joint accounts, 250t both in-trust for and by-accounts.

    -viking universal tools

  14. our experience with closed bank like urban bank, bankwise…. eventhough its timedeposittransaction…. nakuha namin upto 100t…. yung sobra naibalik din….swerte dahil inaquire ng veterans and importexport. ewan ko lang dito sa bofpque…… sana bayarin ng pdic asap….. bank insurance naman eto at hindi pyramiding….bank po eto mr.pdic.

    -viking universal tools

  15. RURAL Bank of Mawab Davao has a president who has stolen the depositors money and run away, the Bank claims it is not their responsibility, because they did not give him permission to do it ??? so the depositors lose….. they did not supervise their employee properly, I think it is the banks responsibility, and they should pay. Dont Invest in the phils, too much of a gamble.

    • yes ur right rb mawab is responsible for the acts of their officers and employees. it is not the sole duty of the depositors to look into the affairs of the bank as well as of their officers and employees but the main duty of its officers

  16. High Level of corruption have been found in N.M.G.B (Narmada Malwa Gramin Bank). It has been found that Dewas & Ujjain regions of the bank are the most corrupt regions of the bank. A close study reveals that most of the villagers approach the Local Agent to get his Kisan Credit Card ( K.C.C). The Agent charges 10% of the Loan value from the farmer. 
    After the Public dealing is over in the bank the agent approaches the manager with the Loan files of his customer. 
    In normal course the farmer is refused the Loan on one plea or the other.
    This needs to be brought to the notice of the general notice of all the public.
    This needs to be stopped as once the farmer gets the loan done from the agent after giving 10% of the loan value he has no intention to payback the loan as he thinks that the bank will write of his loan or close the loan account on a compromise. In any way both the Employee and the Lender are ruining the public money for their minor interests. 


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