From: Legacy Group Banks May Be Doomed

[Mr Lee]

And the saga continues PDIC puts P250,000 cap on Legacy

[Mr Lee]

PDIC set to process claims of Legacy's big depositors http://www.philstar.com/Article.aspx?artic...bCategoryId=108

[Mr Lee]

Philippine Deposit Insurance Corp. sets payout of Legacy claims up to p250,000 http://www.philstar.com/Article.aspx?artic...ubCategoryId=63

[Mr Lee]

I sure would not want to be De los Angeles. Anyone want to take bets on how long he stays alive. Thousands of soldiers, tillers, cops victims of Legacy scamhttp://www.tribuneonline.org/headlines/20090420hed2.htmlMore than 12,000 uniformed personnel were among the victims of the dubious pre-need plans under the Legacy Group, Sen. Manuel Roxas II said yesterday along with announcing the resumption this morning of the Senate inquiry into the status of the pre-need industry.

[TheMason]

I sure would not want to be De los Angeles. Anyone want to take bets on how long he stays alive. Thousands of soldiers, tillers, cops victims of Legacy scamhttp://www.tribuneonline.org/headlines/20090420hed2.htmlMore than 12,000 uniformed personnel were among the victims of the dubious pre-need plans under the Legacy Group, Sen. Manuel Roxas II said yesterday along with announcing the resumption this morning of the Senate inquiry into the status of the pre-need industry.

This paragraph makes me wonder....Roxas, chairman of the Senate committee on trade and commerce, said the total pre-need payments made by soldiers and police officers through mandatory salary deduction amounted to P317.5 million.Who mandated the salary deductions? Who decided the deductions should go to Legacy?

[tom_shor]

I sure would not want to be De los Angeles. Anyone want to take bets on how long he stays alive. Thousands of soldiers, tillers, cops victims of Legacy scamhttp://www.tribuneonline.org/headlines/20090420hed2.htmlMore than 12,000 uniformed personnel were among the victims of the dubious pre-need plans under the Legacy Group, Sen. Manuel Roxas II said yesterday along with announcing the resumption this morning of the Senate inquiry into the status of the pre-need industry.

This paragraph makes me wonder....Roxas, chairman of the Senate committee on trade and commerce, said the total pre-need payments made by soldiers and police officers through mandatory salary deduction amounted to P317.5 million.Who mandated the salary deductions? Who decided the deductions should go to Legacy?

Do you really want to know the answer to that question? That bit of information might be hazardous to your health.

[Mr Lee]

PDIC settles P1.5B in Legacy deposit claims Out of P6B doubtful accounts http://newsinfo.inquirer.net/inquirerheadl...-deposit-claimsI wonder if those other people will ever see their money?

[Mr Lee]

Better get out there and file your claims ASAPLegacy account holders urged to file claims http://www.philstar.com/Article.aspx?artic...ubCategoryId=66Out of the total 134,653 accounts from 12 bankrupt Legacy banks, an estimated of 51,847 accounts were already verified, meaning they are eligible for claims.

[TheMason]

I think this is all old news :1 (72): & most people will never see their money & especically foreigners living in the Philippines. I am sorry to say this but only a fool would have invested in something like that. yeah right 20% I have a bridge for sale too anyone foolish enough to buy it from me :D Sorry if any of you lost money but 20% come on now :728: that is what they should do to anyone who was selling that type of thing to people who could not afford to throw away their money

My understanding is that the plans sold to ex-pats were sold to them primarily by fellow ex-pats. The people that bought them likely figured they could trust the other ex-pat because they were 'one of them.' Call me cynical, but my experience is that fellow ex-pats are generally less trustworthy than the locals. They rely on their nationality to gain trust they do not deserve.The people I have a lot of sympathy for are the Filipinos that bought pre-need plans from Legacy for their children's education. Those plans were supposed to have PDIC insurance, but the deposits were lumped together and held in the name of Legacy executives, thus nullifying the PDIC insurance.

[Mr Lee]

Follow up post for members info and comments. This could adversely affect future PDIC payout's, so we all need to be more careful. PDIC sees P10-B loss from Legacy banks mess09/17/2009The Philippine Deposit Insurance Corp. (PDIC) estimates that the fraud-ridden Legacy Group banks it has taken will cost the agency P10 billion in unrecoverable insurance payouts as it found that assets of the banks placed under its custody were overstated by nearly P20 billion."Initial estimates based on examination of deposit accounts and claims filed place Legacy payouts at P10 billion with practically no recoveries," according to PDIC."Because of this, PDIC will bear a heavy hit on its Deposit Insurance Fund (DIF). Uninsured depositors and other creditors will also be hit as recoveries from liquidation are expected to be nil. Holders of denied claims will also bear a hit," PDIC president Jose Nograles said.Verification conducted by PDIC deputy receivers of the 12 Legacy Group-affiliated banks showed overstatement of the assets in the books of the banks amounting to P18.96 billion.Nograles said the banks financials may still be adjusted once the results of the forensic investigation being undertaken by an external audit firm on these banks are filed.Nograles said that as of PDIC takeover in December 2008, these banks consolidated statement of condition recorded total assets at P19.82 billion.However, based on asset verification and valuation made by the designated deputy receivers of PDIC, the consolidated total assets of the Legacy banks as of end August 2009 was estimated at only P856 million, revealing an P18.96 billion worth of potential overstatement in the Legacy banks books.The overstatement implies that estimated realizable assets (Erva) of the 12 Legacy banks combined will be less than 10 percent of the recorded total assets as of takeover date.PDIC found that the books of the banks indicated overstatements in the following accounts: real and other properties acquired or Ropa (P6.86 billion); due from banks transactions (P3.8 billion); sale contract receivables (P2.98 billion); loans (P2.49 billion), other assets (P2.3 billion); and others such as due from banks, equity investments, IBODI and FFEs (almost P500 million). The overstatement in the financial records of the banks would make it appear that these banks had adequate assets to continue doing business.The state deposit insurer earlier took its investigation of the Legacy-affiliated banks to a higher level by engaging the services of Punongbayan & Araullo, an audit firm with expertise in forensic fraud investigation, affiliated with Grant Thornton, International PA. Forensic investigation is geared toward uncovering transactions intentionally hidden in a maze of paper trail and deleted computer files. It aims to identify and document possible fraud schemes, irregularities and anomalies that may have been perpetrated against the banks and which may be used as basis for the filing of criminal, civil and/or administrative cases. Punongbayan & Araullo is now in the thick of uncovering fictitious transactions in the Legacy banks in the form of loans, sales contract receivables (SCR) and other receivables.As statutory receiver, PDIC is tasked to administer the assets of closed banks and maximize recovery for the benefit of creditors. The amount that may be recovered from the assets of a closed bank will be distributed to satisfy the claims of the closed banks creditors, including depositors with uninsured deposits.Nograles said that PDIC is now investigating and will file appropriate charges, when warranted, against accountable bank officers and employees as well as external auditors for any misrepresentations of the actual financial status of the banks. Under Section 21 (f) (3) of the PDIC charter, any willful making of a false statement or entry in any bank report or document required by the PDIC is punishable by prision mayor or a fine of up to P2 million or both.PDIC had filed three syndicated estafa cases vs Legacy owner Celso de los Angeles Jr., his wife and son, and several Legacy officers for misappropriation and siphoning of funds of Rural Bank of Carmen in Cebu, Nation Bank in Bacolod, and Rural Bank of Bais in Mandaue. Syndicated estafa is a non-bailable offense. PDIC has also charged accountable officers of Philippine Countryside Rural Bank Inc., Rural Bank of San Jose in Batangas and RB Bais in Mandaue for refusal to turnover bank records still in their possession.http://www.tribuneon...090917bus1.html