Estafa and the Bouncing Checks Law and Jurisprudence

Chapter 1

ESTAFA

"In estafa, the person prejudiced or the immediate victim of the fraud need not be the owner of
the goods misappropriated-the use by the law of the word "another" instead of the word "owner"
means that as an element of the offense, loss should have fallen upon someone other than the
perpetrator of the crime."-Mi. Justice Puno

ESTAFA DEFINED AND EXPLAINED

Estafa is committed by a person who defrauds another causing him to suffer damage, by means
of unfaithfulness or abuse of confidence, or of false pretense opt fraudulent acts. For the
existence of the crime of estafa, two elements are indispensable: fraud and damage.2 In other
words, the essential elements of estafa are: (1) The deceit employed to defraud another; and (2)
the injury or damage caused thereby.

Swindling or estafa under the Revised Penal Code

ART. 315. Swindling (estafa).-Any person, who shall defraud another by any of the means
mentioned herein below shall be punished by law:

1st. The penalty of prison correcional in its maximum period to prison mayor in its minimum
period, if the amount of the fraud is over 12,000 but does not exceed 22,000 pesos, and if such
amount exceeds the latter sum, the penalty provided in this paragraph shall be imposed in its
maximum period, adding one year for each additional 10,000 pesos; but the total penalty which
may be imposed shall not exceed twenty years. In such case, and in connection with the
accessory penalties which may be imposed and for the purpose of the other provisions of this
Code, the penalty shall be termed prison mayor or reclusion temporal, as the case may be.

2nd. The penalty of prison correccional in its minimum and medium periods, if the amount of the
fraud is over 6,000 pesos but does not exceed 6,000 pesos; and

3rd. The penalty of arresto mayor in its maximum period to prison correctional in its minimum
period, if such amounts is over 200 pesos but does not exceed 6,000 pesos; and

4th. By arresto mayor in its medium and maximum periods, if such amount does not exceed 200
pesos, provided that in the four cases mentioned, the fraud be committed by any of the following
means:

1. With unfaithfulness or abuse of confidence, namely: (a) By altering the substance, quantity, or
quality of anything of value which the offender shall deliver by virtue of an obligation to do so,
even though such obligation be based on an immoral or illegal consideration. (b) By
misappropriating or converting, to the prejudice of another, money, goods, or any other personal
property received by the offender in trust or in commission, or for administration, or under any
other obligation involving the duty to make delivery of or to return the same, even though such
obligation be totally or partially guaranteed by a bond; or by denying having received such
money, goods, or other property. (c) By taking undue advantage of the signature of the offended
party in blank, and by writing any document above such signature in blank, to the prejudice of
the offended party or any third person.

2. By means of any of the following false pretenses or fraudulent acts executed prior to or
simultaneously with the commission of the fraud: (a) By using fictitious name, or falsely
pretending to possess power, influence, qualifications, property, credit, agency, business or
imaginary transactions, or by means of other similar deceits. (b) By altering the quality, fineness
or weight of anything pertaining to his art or business. (c) By pretending to have bribed any
Government employee, without prejudice to the action for calumny, which the offended party
may deem proper to bring against the offender party may deem proper to bring against the
offender. In this case, the offender shall be punished by the maximum period of the penalty. (d)
By postdating a check, or issuing a check in payment of an obligation when the offender had no
funds in the bank, or his funds deposited therein were not sufficient to cover the amount of the
check. The failure of the drawer of the check to deposit the amount necessary to cover his check
within three (3) days from receipt of notice from the bank and/or insufficiency of funds shall be
prima facie evidence of deceit constituting false pretense or fraudulent act. (As amended by Rep.
Act No. 4885, approved June 17, 1967.). (e) By obtaining any food, refreshment or
accommodation at a hotel, inn, restaurant, boarding house, lodging house, or apartment house
and the like without paying therefore, with intent to defraud the proprietor or manager thereof, or
by obtaining credit at a hotel inn, restaurant, boarding house, lodging house, or apartment house
by the use of any false pretense, or by abandoning or surreptitiously removing any part of his
baggage from a hotel, inn, restaurant, boarding house, lodging house or apartment house after
obtaining credit, food, refreshment or accommodation therein without paying for his food,
refreshment, or accommodation. (As amended by Corn. Act No. 157.)

3. Through any of the following fraudulent means: (a) By inducing another, by means of deceit,
to sign any document.
(b) By resorting to some fraudulent practice to insure success in a gambling game. (c) By
removing, concealing or destroying, in whole or in part, any court record, office files, document
or any other papers.
What Does Bounced Check Mean?
A slang word for a check that cannot be processed because the writer has insufficient funds. A
bounced check will often be returned to the writer along with a penalty fee for non-sufficient
funds. "Passing" bad checks is illegal, and the crime can range from a misdemeanor to a felony,
depending on the amounts involved and whether the activity involved crossing state lines.

Also known as a rubber check, dishonored check, or bad check.

Investopedia explains Bounced Check

Many times, bad checks are written inadvertently by people who simply were unaware that their
bank balances were too low.  It is always a good idea to have a small overdraft line of credit to
cover such situations, or keep a close eye on your balance near bill-paying time. 

When there are insufficient funds in an account, the bank will "bounce the check" (refuse to
honor it). Banks and vendors frequently charge fees for bounced checks, sometimes exceeding
the amount for which the check was written. Online banking can help to avoid writing bad
checks by allowing you to view your balance more frequently. Consumers can also create a
backstop account that is automatically debited if the primary checking account is too low to pay
a specific check.

Chapter 2

THE BOUNCING CHECKS LAW (Batas Pambansa BIg. 22)

"The Bouncing Chocks Law was devised to safeguard the interest of the banking system and
legitimate public checking account user. It was not designed to favor or encourage those who
seek to enrich themselves through manipulation and circumventing the purpose of the law."
-Mr. Justice Quisumbing

AN ACT PENALIZING THE MAKING OR DRAWING AND ISSUANCE OF A CHECK

WITHOUT SUFFICIENT FUNDS OR CREDIT AND FOR OTIHER PURPOSES

Be it enacted by the l3atasang Pam bansa. in session assembled:

SECTION 1. Checks without sufficient funds.

Any person who makes or draws and issues any check to apply on account or for value, knowing
at the time of issue that he does not have sufficient funds in or credit with the draws bank for the
payment of such check in full upon its presentment, which check is subsequently dishonored for
the same reason had not the drawer, without any valid reason, ordered the bank to stop payment,
shall be punished by imprisonment of not less than thirty days but not more than one (1) year or
by a fine of not less than but not more than double the amount of the check which fine of not less
than but not more than double the amount of check which fine shall in no case exceed Two
Hundred Thousand Pesos, or both such find and imprisonment at the discretion of the court. The
same penalty shall be imposed upon any person who, having sufficient funds in or credit with the
drawer bank when he makes or draws and issues a check, shall fail to keep sufficient funds or to
maintain a credit to cover the full amount of the check if presented within a period of ninety (90)
days from the date appearing thereon, for which reason it is dishonored by the drawee bank.
Where the check is drawn by a corporation, company or entity, the person or persons who
actually signed the check in behalf of such drawer shall be liable under this Act.

Bad Check defined.

A bad check is a check that is not honored because the account either contains insufficient funds
or does not exist. It is also called a hot check, worthless check, rubber check, worthless check,
bounced check, cold check, false check, or dry check.

Two distinct acts penalized in the Bouncing Checks Law

An analysis of Section 1 shows that the Bouncing Checks Law punishes two (2) distinct acts: (1)
making or drawing and issuing any check to apply on account or for value, knowing at the time
of issue that the drawer does not have sufficient funds in or credit with the drawee bank; and (2)
having sufficient funds in or credit with the drawee bank shall fail to keel) sufficient funds or to
maintain a credit to cover the full amount of the check if presented within a period of ninety (90)
clays from the date appearing thereon, for which reason it is dishonored by the drawee bank.3