Court convicts officer of closed Rural Bank of Salinas (Cavite), Inc.

The Municipal Trial Court of Rosario, Cavite (MTC-Rosario) and Regional Trial Court of Cavite City (RTC-Cavite City) convicted a former officer of the now closed Rural Bank of Salinas (Cavite), Inc. (RB Salinas) for violation of the Revised Penal Code, The New Central Bank Act, and The General Banking Law of 2000.

The courts convicted the bank’s former President/Manager Teodoro G. Salud based on a criminal complaint filed by the Bangko Sentral ng Pilipinas (BSP) with the Department of Justice in April 2018.

In its decision dated 15 November 2021, MTC-Rosario sentenced Salud to imprisonment of six months to two years and four months, and to pay a fine of Php 5,000.00, for each of the 14 counts of Falsification of Commercial/Public Documents under the Revised Penal Code. In the same decision, the court also sentenced Salud to imprisonment of one year and one day to five years for each of the six counts of violation of False Statement of The New Central Bank Act.

Moreover, in an order dated 15 November 2021, RTC-Cavite City sentenced Salud to imprisonment of four to six years for each of the six counts of violation of Engaging or Participating in Prohibited or Fraudulent Transactions of The General Banking Law of 2000.

The criminal cases arose from the false representation of Salud in RB Salinas’ Statement of Condition on the existence of eight Time Deposit Accounts amounting to Php 62,589,260.39 and investments in the form of Treasury Bills amounting to Php 102,500,000.00.  Likewise, Salud grossly overstated the balance of RB Salinas’ savings account by Php 24,500,000.00.

The BSP is committed to maintaining the soundness of the financial system and protecting public interest through the implementation of good governance practices and compliance with existing laws among its supervised financial institutions.