INCREASING THE PENALTY FOR CERTAIN FORMS OF SWINDLING OR ESTAFA.

• Number: Presidential Decree No. 1689
• Sections: 3

Preamble

WHEREAS, there is an upsurge in the commission of

swindling and other forms of frauds in rural banks, cooperatives,

"samahang nayon (s)", and farmers' associations or

corporations/associations operating on funds solicited from the general

public;

WHEREAS, such defraudation or misappropriation of

funds contributed by stockholders or members of such rural banks,

cooperatives, "samahang nayon(s)", or farmers' associations, or of funds

solicited by corporations/associations from the general public, erodes

the confidence of the public in the banking and cooperative system,

contravenes the public interest, and constitutes economic sabotage that

threatens the stability of the nation;

WHEREAS, it is imperative that the resurgence of

said crimes be checked, or at least minimized, by imposing capital

punishment on certain forms of swindling and other frauds involving

rural banks, cooperatives, "samahang nayon(s)", farmers' associations or

corporations/associations operating on funds solicited from the general

public;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby decree and order as follows:

Section 1

SEC. 1. Any person or persons who shall commit

estafa or other forms of swindling as defined in Article 315 and 316 of

the Revised Penal Code, as amended, shall be punished by life

imprisonment to death if the swindling (estafa) is committed by a

syndicate consisting of five or more persons formed with the intention

of carrying out the unlawful or illegal act, transaction, enterprise or

scheme, and the defraudation results in the misappropriation of moneys

contributed by stockholders, or members of rural banks, cooperatives,

"samahang nayon(s)", or farmers associations, or of funds solicited by

corporations/associations from the general public.

When not committed by a syndicate as above defined, the penalty

imposable shall be reclusion temporal to reclusion perpetua if the

amount of the fraud exceeds 100,000 pesos.

Section 2

SEC. 2. This decree shall take effect immediately.

DONE in Manila, Philippines, this 6th day of April, in the year of Our Lord, nineteen hundred and eighty.

(Sgd.) FERDINAND E. MARCOS

President of the Philippines

By the President:

(Sgd.) JUAN C. TUVERA

Presidential Assistant