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Saturday, July 12, 2003
Cards gang faces econ sabotage rap
By Rose O. Versoza
CEBU -- Aside from estafa and fraud, a case for economic sabotage is being prepared against the four Metro Manila residents who used fake credit cards to buy millions worth of goods in Cebu.
An official from the Credit Card Association of the Philippines (CCAP) identified them as the same persons who duped five establishments in Manila last June 20 to June 30. The group used five or six other fake credit cards to buy various items, amounting to around P2 million.
Credit card fraud should be considered a form of economic sabotage because it does not only affect the integrity of the country's banking industry but the entire economy, the official said.
The CCAP official, who refused to be named for security reasons, said the Philippines and its banking industry have earned a "bad reputation" in the international banking community because of a high incidence of credit card fraud.
Charged before the Mandaue City Prosecutor's Office Friday were Vicente Galang Rayo, 30, of No. 7 McKinley St., Greenhills Subdivision, San Juan Metro Manila; Lourdes Castro Fjeld, 28, of No. 5 Tupas St., Pilar Village, Las Piņas; Dexter Anacio Bautista, 23, of Bacoor, Cavite; and American national Jacqueline Norris Johnson, 32, of Greenhills, San Juan, Metro Manila.
"Even if you are all millionaires, I will never allow you to post bail. I promise you that," Mandaue City Assistant Prosecutor Bienvenido Mabanto told the four suspects Friday.
Initial investigation showed the group's cards were fake duplicates that, except for the cardholder's name, carried information taken from valid international credit cards. How this was pulled off is something investigators have yet to figure out.
The group bought bulbs and electric heaters worth P526,000 from Mandaue Cebu Trade Center and water heaters amounting to P374,950 from Cebu Home and Builders Centre, using fake credit cards.
Other business establishments that were also duped by the group were A. Salonga Music Center, Echo Appliance Center, Imperial Plaza, G.A. Yupangco Co. Inc. and Cebu Perfect Image.
These stores lost over P788,000 to the group.
All fake
So far, only representatives from Mandaue Cebu Trade Center, Cebu Home and Builders Centre and Equitable Bank have submitted their affidavits to the Mandaue City Prosecutor's Office.
Police said the other establishments might file their case in Cebu City since the transactions happened there, not in Mandaue.
Representatives from Citibank, Hong Kong and Shanghai Banking Corp. (HCBC), Standard Chartered Bank and Equitable Network Card certified that the seven credit cards used by the suspects were all fake.
Senior Insp. Rey Tiempo, Mandaue City Police Office (MCPO) administrative officer, said over 20 establishments in Cebu were duped by the group for a total of P5 million.
Tiempo led the operation that resulted in the group's arrest Thursday.
Bank representatives, though, could not yet verify the exact amount involved as they are still verifying the transactions with their merchants.
But Dave Rey Alaan of Equitable Network Card confirmed the group's transactions that were monitored as having passed through their card machines in Cebu already amounted to P1.7 million.
Blocked cards
In a separate interview, the CCAP official said that upon learning of the transactions in Manila, the banks immediately blocked the credit cards.
The suspects were already using another set of cards for their transactions in Cebu, he said.
Before the group's arrest, bank officials in Manila warned their local branches to look out for persons who are using fake cards, which is why Equitable Network Bank immediately detected the fraudulent purchases.
When the CCAP official learned about the group's arrest last Thursday, he flew to Cebu yesterday morning to assist in the filing of the case.
Assistant Prosecutor Mabanto said the four will be charged with economic sabotage, estafa and violation of Republic Act 8484, or the Access Devices Regulation Act of 1998.
Mabanto, who conducted the inquest investigation Friday noon, said he will make sure the four will not be able to post bail.
He explained that because of the amounts involved, he recommended the filing of economic sabotage, for which bail is not allowed. He said the criminal cases will be immediately filed in court.
International
A certain Atty. Go reportedly went to MCPO last Thursday and claimed that he was the lawyer of the suspects, but no lawyer appeared for them during their inquest investigation Friday.
Mabanto said each transaction is to be considered as one criminal charge. The group also violated at least six sections of RA 8484 and each violation is to be considered as one charge, because RA 8484 provides for different penalties for each section.
The CCAP official believes there are various card-fraud groups operating in the country but they use a similar scheme and have connections abroad.
International banks are suffering huge losses from fraudulent credit card purchases in the Philippines, the CCAP official said.
Transactions that are made here using fake credits cards are eventually billed to the authentic cardholders living abroad. Since they refuse to pay for the transactions, the international banks that issued the card bear the loss.
Alaan and Rogelio Lo Manglapus, in their joint affidavit, said Rayo, who was then with Bautista, bought P163,000 worth of electric bulbs and water heaters from Mandaue Cebu Trade Center using a credit card last Monday.
Sent to Manila
When Manglapus swiped the credit card through the Equitable card machine, he got the approval code.
The following day, he received full payment from Equitable Card Network.
Later that afternoon, Fjeld arrived in the same store together with Bautista and bought similar items, worth P363,000. Just like the first transaction, the Equitable card reader also approved it so the store released the items.
However, when the store tried to collect from Equitable, it was told that the bank can no longer pay because that credit card was a fake one.
Last Thursday, Bautista called Manglapus by telephone and ordered P85,000 worth of electric bulbs. Minutes later, he arrived with Rayo.
Manglapus immediately notified Alaan, who in turn reported the matter to the police. The four immediately left the store when the Mandaue City Special Weapons and Tactics arrived.
The police gave chase and eventually arrested the group on Lopez Jaena St. in Barangay Subangdaku.
The four suspects, who are now detained at the Mandaue City Police Station 1, said the items they bought were already shipped to Manila. Mandaue policemen are still conducting follow-up operations. Sun.Star Cebu
(July 12, 2003 issue)
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