What and how did Canuto Armada know about the scheme

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Reference no: EM132956164

Question - The Case of the Scheming Employee: Answer the question at the bottom elaboratively.

Jose Gonzales has accumulated a substantial amount in savings, after working in Saudi Arabia for 25 years. He started working as an OFW right after graduating with a BS in Civil Engineering at the age of 24.

On July 10, 1992, he quit his overseas job. He then purchased a 300 sq.m. lot in Quezon City, close to the Marikina border, for P100,000. He immediately applied for a P200, 000 bank loan to construct a 6-door apartment building. The loan was fully paid on July 10, 2002.

In August 2002, Jose migrated to the US. To finance his trip, and to purchase a small home in California, he obtained a 20-year mortgage on his property for P1 M, from Bangko Progresibo. He transferred to this bank because it had a higher loan limit. The monthly amortization on the loan would be paid from out of the rentals from the 6-door apartments.

Before leaving for the US, he hired Brutus Banquil, then 21 years old, as property administrator. The apartment rentals would pay for the bank loan payments, property taxes, and Brutus salary. The surplus rental income was about P5, 000 monthly, which he promptly deposited in the savings account of Mr. Gonzales.

In 2012, because the lease contracts were renewed and the rental rates increased, the excess from rental payments, versus all disbursement, was P15, 000 monthly.

About this time, Brutus heard that his employer became seriously ill and was now confined in a nursing home. Thereafter, Brutus began to conceive his evil scheme.

First, on January 2013, he opened a savings account at Marikina Community Bank just across the bridge. It was opened in the name of Jose Gonzales, but the signature specimens were filled out by Brutus, using his own signature strokes. He also presented some picture of ID's he obtained from a friend working at C.M. Recto Avenue. All the excess rentals were deposited in his account.

He visited the bank twice weekly and got to be friends with everyone, including the loan officer, Mr. Canuto Armada.

Then, he went to Bangko Progresibo, paid the loan balance and obtained all the loan documents: title in the name of Jose Gonzales, tax declaration, proof of acquisition of property. He had no problem getting a release of the documentation because everybody at that bank knew him to be the property administrator of Mr. Gonzales.

After one year, he heard that his employer was now comatose. Brutus decided it was time to make the big move. He brought all the loan documents to the Marikina Community Bank and applied as Jose Gonzales for P5 M loan.

He presented himself as owner of the property and showed his savings passbook, which now has a balance of P180,000 as proof of his property, this was actually unnecessary because the teller and the loan checks, and the loan officer know him by name.

He was positive he could get away with it. The title is in the name of "Jose Gonzales, single, Filipino citizen...". The previous loan have been fully paid, and the loan account's ledger show an excellent payment history.

When Brutus called a week later to follow-up on the application, the loan officer secretly called the police and when Brutus walked into the bank, SPO1 Ben Ventura said to Brutus: "You are under arrest; you have the right to remain silent".

What and how did Canuto Armada know about the scheme?

Reference no: EM132956164

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