MANILA, Philippines - The former president of a rural bank was found guilty and sentenced to jail for falsifying documents and reporting false statements to the Bangko Sentral ng Pilipinas.
In a statement, the BSP said Pepito Miradora Cilos, ex-president of the Rural Bank of Milaor (Camarines Sur), was found guilty and sentenced by the 5th Municipal Trial Court of Camaligan-Gainza-Milaor to imprisonment and payment of fines.
The BSP filed a case against Cilos over RB Milaor's grant of four loans totalling P6.5 millon on May 30, 2008.
The BSP Office of Special Investigation discovered the four loans were questionable and fraudulent since the borrowers could not be found in the addresses given in the loan documents, and a land title used in securing the loan deemed questionable by the Register of Deeds.
It further discovered that land titles used as collateral for the three loans were issued a few months after the loans were granted, and the loan documents were haphazardly processed. The community tax certificate numbers used by the borrowers in the loan documents were also not issued by the concerned municipalities.
The fraudulent loans were included in the loan portfolio of RB Milaor and reported in its consolidated statement of condition (CSOC) submitted to the BSP.
"The BSP considered the four CSOCs signed by Mr. Cilos as falsified because the CSOCs included the four loans.... Considering the CSOCs are submitted by RB Mialor as part of its reportorial requirements to the BSP or its examiners, any false or misleading statement on the contents of the VSOCs makes the responsible person (Mr. Clios) criminally liable," the BSP said.