Court extends freeze on Korina’s swindler

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Court extends freeze on Korina’s swindler

By Rey E. Requejo

THE Court of Appeals has extended for three months the freeze order it issued on the assets of Power Generation Trading Corp. and its officials in connection with a P512.2-million investment scam.

The appellate court, through Associate Justice Noel Tijam, extended the freeze order to May 19 to allow the Anti-Money Laundering Council to complete its investigation of the company’s alleged money laundering activities.

But the court reminded the council that it would no longer extend the freeze order beyond May 19, and because court rules provided that a freeze order may only be extended for a period not exceeding six months.

The freeze order was issued last Oct. 31 and was supposed to have lapsed on Nov. 19, but it was extended to Feb. 18, 2009.

But the council could not complete its investigation on the bank accounts and vehicles of the company and its officials because the Supreme Court had recently required that applications for bank inquiries could no longer be made if the owners of the accounts were not duly notified.

The freeze order on the assets stemmed from the P512.2-million syndicated estafa case that the Department of Justice filed before the Manila Regional Trial Court against the company and its officers, led by Rudy Enrique Olalia.

Olalia, who was charged by 15 people, including television newscaster Korina Sanchez and investigators, said the company maintained accounts in Banco de Oro Universal Bank, Bank of the Philippine Islands, Metrobank, iBank, BDO/Equitable PCI Bank, BPI Family Savings Bank, Hongkong and Shanghai Banking Corp., Security Bank Corp., United Coconut Planters Bank, GE Money Bank, Rizal Commercial Banking Corp. and Robinson’s Bank.

Sanchez aside, the complainants in the syndicated estafa case were Jonathan and Minnie Yao, Lino Barte, Philip Recto, John Medel Cruz, Jose Palma Jr., Rosemary David-de Galicia, Perfecto Espiritu, Rufino Agudera, Edgardo de Villa Jr., Merle Florentino, Cecilio Vivar, Joel Mari Villa, Jocelyn Roxas and Jose Antonio Yturri.

The council also sought the forfeiture of Olalia’s Porsche Cayenne, Chrysler Town & Country, and BMW motorcycle; the Mazda Tribute registered under Lourdes Olalia; Janet Alfaro’s Mitsubishi Outlander; and Angelo David’s Toyota Vios and Honda Civic.

The complainants accuse Powergen of soliciting fuel orders from customers like bus companies and shipping lines that were buying on credit.

These fuel orders were shown to prospective investors, who then agreed to finance the purchases in exchange for a guaranteed profit of 6 to 8 percent over 33 days. Olalia was said to have issued post-dated checks covering the value of the investment and the profit on the principal after the 33-day period, but investors could not cash the checks.