REPUBLIC OF THE PHILIPPINES]

IN THE CITY OF BACOLOD ]S.S.

COMPLAINT-AFFIDAVIT

I, EMMANUEL B. GABUAN, of legal age, married and with

office/business address at Room 102 Carmen Bldg., Lizares-Araneta
Sts., Bacolod City, after being duly sworn, do hereby depose and state
that:

1. I am the Officer-In-Charge of the Bacolod Branch Office of FG

Financial Company, Inc. (formerly Fil-Global Credit and Asset
Management, Inc.), hereinafter ‘FG Financial,’ a corporation duly
organized and existing under Philippine laws, with principal office
address at 3101 West Tektite Tower, PSE Center, Exchange Road,
Ortigas Center, Pasig City. FG Financial is engaged in the business of
financing and money lending;

2. As Branch Officer-In-Charge (OIC), my duties and functions

include supervising the staff of the Branch in the credit processing of
loan applications as well as ensuring their performance of duties and
tasks bearing upon the credit collection or recovery of the Branch upon
its accounts;

3. I am also authorized to represent FG Financial in filing

appropriate complaints and pursuing legal actions with the proper law
enforcement agencies and/or courts to safeguard and protect the rights
of FG Financial. A copy of the Corporate Secretary’s Certificate
evidencing my authority is hereto attached as Annex “A” and made an
integral part hereof;

4. Sharmy Joy T. Regalado, of legal age, single and a resident of

Cabacungan, La Castellana, Negros Occidental, was formerly an
employee of FG Financial’s Bacolod Branch Office holding the position of
Customer Interface Group Assistant or CIGA at the time of her
separation from employment whose duties and functions consist, among
others, of conducting credit investigation and evaluation of solicited
applicants for loan at the Bacolod Branch of FG Financial and collecting
payments from borrowers of the Branch. Sharmy Joy T. Regalado
(Sharmy for brevity) is presently employed at Farmer’s Bank located at
______________________________ where she may be served with official
notice and other processes. Copy of Sharmy Joy T. Regalado’s original
employment contract with FG Financial, her subsequent appointment as
CIGA and her letter of resignation are hereto attached as Annexes “B,”
“B-1” and “B-2,” respectively;

5. After Sharmy Joy T. Regalado was separated from the

employment of FG Financial effective May 9, 2007, discovery was made
of an act of irregularity on her part involving Ms. Marolita D. Sobrepeña,
one of the borrower’s of FG Financial’s Bacolod Branch. Ms. Marolita D.
Sobrepeña has an existing loan with the Bacolod Branch in the amount
of Php 21,996.00 payable via postdated checks at a monthly
amortization of Peso Three Thousand Six Hundred Sixty-Six (Php
3,666.00) from February 28, 2007 until July 30, 2007. As evidence of
Ms. Marolita D. Sobrepeña’s loan account, hereto attached as Annexes
“C” and “D” are her Loan Application Form and Promissory Note dated
January 31, 2007, respectively;

6. On May 17, 2007, I was informed by one of my staff, Ms. Iryne

Grace G. Ricopuerto who telephoned Ms. Marolita D. Sobrepeña
regarding her supposedly unpaid April 30, 2007 amortization, that the
latter claimed having already paid not only her April 30, 2007 but also
her May 30, 2007 amortization. Surprised by Ms. Marolita D.
Sobrepeña’s claim since her April 30, 2007 postdated check was
dishonored upon presentment, I called her up to get to the bottom of
things;

7. According to Ms. Marolita D. Sobrepeña, she talked to Sharmy

on April 12, 2007 to express her intention to apply for a loan renewal
and that to be able to do that, she told Sharmy that she was ready to pay
in advance her April 30, 2007 and May 30, 2007 amortizations for her
current loan;

8. On April 17, 2007, Ms. Marolita D. Sobrepeña decided to go to

FG Financial’s Bacolod Branch Office to pay in advance and in cash her
April 30, 2007 and May 30, 2007 amortizations but Sharmy contacted
and informed her that since Sharmy had on that day an appointment on
field, the latter would just pick up her payment;

9. Ms. Marolita D. Sobrepeña related that since Sharmy also

promised her to bring her two (2) postdated checks covering the April 30,
2007 and May 30, 2007 amortizations which are to be returned to her in
consideration for her cash payment, Ms. Marolita D. Sobrepeña agreed
and so they met at Jollibee Gatuslao at about 12:30 o’clock noon of April
17, 2007;

10. At Jollibee Gatuslao, Ms. Marolita D. Sobrepeña handed to

Sharmy the amount of Peso Seven Thousand Three Hundred Thirty-Two
(Php 7,332.00) in cash as payment to FG Financial in advance of her
April 30, 2007 and May 30, 2007 amortizations of her loan therefrom so
that she could apply for a new loan from FG Financial. Hereto attached
as Annex “E” is the Acknowledgment Receipt under the name of FG
Financial as issued by Sharmy to Ms. Marolita D. Sobrepeña evidencing
her receipt of the money in the aforesaid amount from Ms. Marolita D.
Sobrepeña;

11. When Ms. Marolita D. Sobrepeña asked for the return of her
two postdated checks, Sharmy said that she forgot them and promised
her to give the checks later;

12. Although with a clear and unquestionable obligation as an

employee then to immediately deliver and remit to FG Financial’s
Bacolod Branch the money received from Ms. Marolita D. Sobrepeña,
Sharmy never turned over and never remitted to the Branch the amount
of Peso Seven Thousand Three Hundred Thirty-Two (Php 7,332.00)
handed to her by Ms. Marolita D. Sobrepeña on April 17, 2007 as the
latter’s advance payment for her April 30, 2007 and May 30, 2007
amortizations on her loan;

12. Sharmy likewise did not inform me as his immediate superior

whether before, on or after April 17, 2007, that she made an
arrangement with Ms. Marolita D. Sobrepeña to pick up outside the
Branch Office the latter’s payment of Php 7,332.00 and that she actually
received such payment. Before and upon her resignation from FG
Financial, Sharmy never informed me of and never accounted for her
receipt of the money amounting to Php 7,332.00 from Ms. Marolita D.
Sobrepeña;

13. As Sharmy never turned over to FG Financial Ms. Marolita D.

Sobrepeña’s payment, nor did she notify or disclose the fact of her
receipt of such payment on April 17, 2007, Ms. Marolita D. Sobrepeña
further narrated to me that she went to the Bacolod Office of FG
Financial on May 7, 2007 to confront and ask Sharmy as to why her
April 30, 2007 and May 30, 2007 checks were still deposited by FG
Financial that incidentally led to the closure of her current account with
EastWest Bank, Bacolod Branch;

14. According to Ms. Marolita D. Sobrepeña, Sharmy requested

her not to tell anyone in FG Financial’s Bacolod Branch Office about the
delivery of the amount of Php 7,332.00 and promised to return to her
said amount on May 15, 2007 but no amount was returned to Ms.
Marolita D. Sobrepeña on the promised date;

15. On June 18, 2007, accompanied by Ms. Marolita D.

Sobrepeña, Sharmy came to the Bacolod Branch of FG Financial where
she admitted before me that she indeed obtained the amount of Php
7,332.00 from Ms. Marolita D. Sobrepeña without any explanation why
she took the money or why she did not turn it over to the Bacolod
Branch Office. Sharmy promised to return to Ms. Marolita D. Sobrepeña
on June 20, 2007 the amount of Php 4,000.00 out of the Php 7,332.00
and to deliver the balance later;

16. On my part, I then demanded Sharmy to do whatever it takes

for her to cause the return of Ms. Marolita D. Sobrepeña’s money either
to her or to FG Financial’s Bacolod Branch;

17. On June 20, 2007, Ms. Marolita D. Sobrepeña came to the

Bacolod Branch Office of FG Financial and paid the amount of Php
3,000.00 with the representation that the money came from Sharmy
who, according to Ms. Marolita D. Sobrepeña, gave her that amount
instead of the earlier promised Php 4,000;

18. Thereafter, despite demands from Ms. Marolita D. Sobrepeña

for Sharmy to return to her the remaining amount of Peso Four
Thousand Three Hundred Thirty-Two & 00/100 (Php 4,332.00) out of the
Php 7,332.00, or deliver the same to FG Financial’s Bacolod Branch
Office, Sharmy refused to heed such demands hitherto;

19. Attached hereto as Annex “F” is the corresponding sworn

statement of Ms. Marolita D. Sobrepeña narrating and describing
Sharmy’s act of misappropriating and converting the amount of Php
7,332.00 to the damage and prejudice not only of FG Financial but also
of Ms. Marolita D. Sobrepeña;

20. Because of the above described acts of Sharmy of

misappropriating and converting, with abuse of confidence, money
received from Ms. Marolita D. Sobrepeña where Sharmy had the
obligation to deliver the same to FG Financial, FG Financial suffered
actual damage or prejudice in the amount of Peso Four Thousand Three
Hundred Thirty-Two & 00/100 (Php 4,332.00) representing unrecovered
and misappropriated payment from its borrower Ms. Marolita D.
Sobrepeña, plus legal interest from the time the amount should have
been received by FG Financial’s Bacolod Branch Office.

Likewise, because of the unlawful acts of Sharmy of

misappropriating and fraudulently failing to remit to FG Financial the
payment from its borrower Ms. Marolita D. Sobrepeña and thereby
violating its proprietary right or entitlement to such payment, FG
Financial suffered nominal damages in the amount of Php 10,000.00.

Finally, because of Sharmy’s act of embezzling the payment of Ms.

Marolita D. Sobrepeña to FG Financial as its employee then and thereby
causing injury to the business reputation of FG Financial, the latter
suffered temperate damages in the amount of Php 20,000.00;

21. I am executing this Complaint-Affidavit to attest to the truth

of the foregoing facts based on personal knowledge and/or available
documents and information in support of FG Financial’s criminal
complaint against Sharmy Joy T. Regalado for estafa by misappropriation
and conversion of money received under an obligation to make delivery of
the same under the pertinent provisions of the Revised Penal Code, as
amended.

EMMANUEL B. GABUAN
Affiant

SUBSCRIBED AND SWORN TO BEFORE ME this __________ day

of August 2007 in the City of Bacolod in Negros Occidental, Philippines.
I hereby certify that I have personally examined the Affiant and I am fully
satisfied that he understood and voluntarily executed the foregoing
sworn statement.

_________________________________
Administering Officer