ART 315 Contd…

 Estafa with Unfaithfulness or Abuse of Confidence (by misappropriation or conversion)

o No obligation to return the same
 Sale of property on trial basis, no estafa
 Investor who loans money to borrower thru middleman
o Money received is not to be used for a particular purpose, no estafa
 The money received was loan and not a delivery of money to be used for a
particular purpose or to be returned
o Paid by students for materials broken are not deposits, no estafa
 No showing that the college undertook to keep safe the money and return the
very same coins or bills, relationship is that of debtor and creditor
o Under contract of sale on credit (like credit card), failure to return or pay is not estafa
o Novation does not obliterate the misappropriation already committed
 Estafa is public offense
 After judicial authorities took cognizance, offended party may no longer divest
the prosecution of its power to exact criminal liability
 Mere acceptance of payments cannot novate, proof of intent to extinguish the
original relationship necessary
o 2nd element has 3 ways:
1. By misappropriating the thing received
2. By converting the thing received
3. By denying that the thing was received
o 1 and 2nd: Misappropriating or converting
st

 Converting – act of using or disposing of another’s property as if it were one’s

own
 Pledging a thing which was received to be sold on commission, is estafa
 Selling for a lower price is not estafa (purpose is sale only)
 Jewelry delivered to an agent to be shown to buyers, was delivered to
sub-agent for same purpose, no estafa
o If no express agreement to contrary, agent can appoint sub-agent
 Jewelry entrusted to be sold for profit was then pawned to pawnshop, is
estafa
 Misappropriating – means to own, to take something for one’s own benefit
 Taking out of funds of company and deposit to personal account, is
estafa
 Permanent or Temporary Misappropriations, is estafa (example: he
returned the misappropriated amount)
o Momentary use of agent of funds belonging to principal, no
estafa if no fraudulent intent
o If authorized to retain commission, no estafa
o Otherwise, there is estafa because right to commission does not
make the agent co-owner
 o If agent was unjustly exploited, retaining of amount which was
even less than actually due is not estafa
 There must be proof of misappropriation or conversion
o Delay in fulfilment, no estafa only civil liability
o When purpose of money was achieved, no estafa
 Both connote an act of using or disposing property as if it were one’s own or
devoting it to a purpose or use different from that agreed upon
o 3rd Way: By denying having received the thing
 Borrowing a ring and later denied having received it
 Delivered by mistake but denied having received a box
o To the prejudice of another
 Not necessarily owner, it could be third person
o When the money or property had been received by partner for specific purpose, such
partner is guilty of estafa
o Co-owner not liable for estafa unless the misappropriation is after the termination of the
co-ownership
o No estafa through negligence
 Mere negligence in permitting another to take advantage or benefit cannot be
estafa
o Basis of estafa is the amount of money not returned before the institution of criminal
action
 Payment subsequent to commission of the crime does not alter the nature of the
crime committed
o Estafa vs Theft (Juridical and Material Possession)
 Turned over the dollars to the accused for change into pesos (only material)
 Change of gold bar into silver coins
 Immediate return is expected (theft)
 Employer-employee is only material possession
 Exception is agent
o INTENT TO APPROPRIATE EXISTED AT THE TIME IT WAS RECEIVED (Theft)
 Otherwise, estafa
o Estafa w/ Abuse of Confidence vs Malversation

o Estafa w/ Abuse of Confidence o Malversation

o Continuing o Continuing
o Property always private o Property usually public
o Offender private individual o Offender public officer accountable
for public funds

o Private individual in conspiracy with public officer for malversation, can be liable for
estafa if public officer is acquitted
 Estafa thru falsification of public document necessarily included in malversation
o Misappropriation of firearm
 If seized (malversation)
  If on the pretext of delivery for examination and sold it (estafa)
 Estafa by taking undue advantage of the signature of the offended party
o Elements
1. That the paper with the signature of the offended party be in blank
2. That the offended party should have delivered it to the offender
3. That above the signature of the offended party a document is written by the
offender without authority to do so
4. That the document so written creates a liability of, or causes damage to, the
offended party or any third person
o Paper with signature in blank must be delivered by the offended party to the offender
 If blank papers with signature are stolen, not estafa
 If wrote document above the signature of stolen paper, falsification
 Estafa by Means of Deceit
o Elements
1. That there must be a false pretense, fraudulent act or fraudulent means
2. That such false pretense, fraudulent act, or fraudulent means must be made or
executed prior to or simultaneously with the commission of the fraud
3. That the offended party must have relied on the false pretense, fraudulent act, or
fraudulent means, that is, he was induced to part with his money or property
because of the false pretense, fraudulent act, or fraudulent means
4. That as a result thereof, the offended party suffered damage
o No deceit if complainant was aware of the fictitious nature of the pretense
o 3 Ways of Committing Estafa
 By using fictitious name
 By falsely pretending to possess
 Power
 Influence
 Qualifications
 Property
 Credit
 Agency
 Business or imaginary transactions
 By means of other similar deceits
o Deceit must be the efficient cause which induced party to part with his money or property
 Deceit must precede the defraudation
 Estafa by using fictitious name
o Person uses a name other than his real name
 Person found pawnshop ticket in the name of another and using the name of that
other person to redeem the jewelry mentioned therein
 Estafa by falsely pretending to possess power
o Pretending that the worthless piece of paper possessed power
o Pretending to be a magician endowed with power to discover hidden treasures
 Estafa by falsely pretending to possess influence
 o Represented that he had influence in Malacanang, when in truth and in fact, he had no
influence
 Estafa by falsely pretending to possess qualifications
o Pretending he was qualified in law to represent the offended party and succeeded in
obtaining title deeds (basis of property is value of the paper, not of land)
 Estafa by falsely pretending to possess property
o On the pretense that he had sufficient funds to pay in cash the value of the materials when
in truth and in fact, he had no money
o Pretending to be general manager and that he has right and authority to offer for sale
townhouses
 Estafa by falsely pretending to possess credit
o Pretending to have 200 cavans of palay for sale but had in fact no palay
o Even if complainant’s view that the plan was conceived because the victim is indebted
 If it was wrong for complainant to refuse to pay his obligation, it was not right
either for appellant to employ unlawful means to enable him to collect. A wrong
cannot justify another wrong
o Pretending they have credit, business, and means so employees of company gave and
delivered goods and merchandise on credit
 Estafa by falsely pretending to possess agency
o Pretending he was sent by depositor to get the deposited goods
 Estafa by falsely pretending to possess business
o Pretending to be engaged in business of buying and selling hotdogs but represented that
they could not deliver because short of funds
o No longer authorized to engage in the business of insurance when he signed and issued
the fire insurance policy then collected premium payment
 Illegal Recruitment and Estafa can be both alleged
o Illegal recruitment is without authority give the impression that they have the power to
send workers abroad for employment purposes
o Illegal Recruitment by Syndicate – committed by a group of three or more conspiring
with one another
o Illegal Recruitment in Large Scale – committed against three or more persons
individually or as a group
 Elements
1. The accused undertook a recruitment activity defined under Article 13b
or any other prohibited practice under Article 34 of Labor Code
2. He did not have the license or authority to lawfully engage in the
recruitment and placement of workers
3. He committed the same against three or more persons, individually or as
a group
 In estafa by means of deceit, the PRETENSE MUST BE FALSE
o In the absence of proof of falsity, criminal intent cannot be inferred
o Since it was not shown that he possessed no influence, he cannot justifiably be held guilty
and his failure to render the service could have been due to a change of mind
 False pretense must exist prior to or simultaneous with the execution of the fraud
o It should have such power before or at the time the statement was given
 Theft vs Estafa by Means of Deceit
o Tasked to collect payments from real buyers of real estate properties (qualified theft, no
juridical possession)
o Took the machines from prospective buyers (theft, no more juridical possession)
o Estafa through falsification of commercial document
 If offender falsified public, official, or commercial document, as necessary
means to commit another crime (estafa, theft, malversation), two crimes form
complex crime
 Filled up withdrawal slips without knowledge of bank depositors and represented
the falsified withdrawal slips to co-employees
 Imitated signature on cashier’s checks
o No Estafa through falsification of private document
 Damage essential to both is the same
 If falsification is committed as means to commit estafa, crime is falsification
 Presenting a document of guarantee purportedly signed for payment of
150 sacks
 Changing the description on the ticket and make it superior value
 If estafa can be committed without necessity of falsification, crime is estafa
o Estafa thru false pretense made in writing is only simple crime of estafa
 Misrepresenting that she was still the unmarried widow to cash the check
o Attempted Estafa thru Forgery
 Forging PCSO ticket and presenting to PCSO for cashing it but forgery was
noticed and the accused failed to get the price
o Fraud in Estafa by Means of Deceit must be proved with clear and positive benefit
 Estafa by Means of Other Similar Deceits
o Presenting a Deed of Donation vitiated by lack of consent to RD for registration
 Estafa by Altering the quality, fineness, or weight of anything pertaining to his art of
business
o Jeweler who changed the stone of gold and diamond with one of lower quality
o Fraudulent manipulation of scale punishable under Consumer Act
 Scale, balance, weight, or measure after it is officially sealed
 Fraudulently misrepresent the weight or measure of articles
 Estafa by Pretending to have given bribe
o Person who would ask money from another for the alleged purpose of bribing a
government employee, but in truth, the offender intended to convert the money to his
personal benefit
o Pretending to bribe a doctor to declare him unfit for compulsory service in Army
 If he really gives the money, crime is corruption of public officer
o Without Prejudice to the action for calumny
 May still be liable for defamation which the government employee allegedly
bribed may deem proper to bring against the offender
 o Acts must be fraudulent (deceit, trick, or cheating)
 False Pretense – use of deceitful words
 Fraudulent Acts – use of deceitful acts
 Estafa by Postdating a check or issuing a check in payment of an obligation
o Elements
1. That the offender postdated a check or issued a check in payment of an obligation
2. That such postdating or issuing a check was done when the offender had no funds
in the bank, or his funds deposited therein were not sufficient to cover the
amount of the check
o Check issued must be genuine, not falsified
 If false, it is estafa through falsification of commercial document
o Check must be postdated or issued in payment of an obligation contracted at the time of
the issuance and delivery of the check
 Should not be postdated or issued in payment of pre-existing obligation
 Issuance of bouncing check in payment of pre-existing obligation is not estafa
o Check issued in substitute for promissory note is pre-existing obligation
o Issuance of check should be the means to obtain money from payee
 When accused did not have to assure the payee that checks would be sufficiently
funded on maturity because had been priorly engaged for 4 years, no estafa
 Issuance of check since 1991 was not the means to obtain jewelry, no
estafa
o Must be able to obtain something from the offended party by means of the check
 Buying goods thru worthless check, estafa
o Check issued not in payment of an obligation, no estafa
 Checks are mere security for payment of the loan
 Awareness by complainant of the fictitious nature of the pretense cannot give rise
to estafa by means of deceit
o Check issued by guarantor, when check was intended to guarantee payment , no estafa
o No funds or insufficient funds at the time of postdating or issuance, Estafa
o Not knowing the insufficiency, not a defense for estafa
o Prima Facie Evidence of Deceit: Failure to deposit the amount necessary to cover his
check within 3 days from receipt of notice from the bank
 If able to deposit within 3 days, no estafa
o Good faith is defense
 Debtor’s offer to arrange a payment scheme with his creditor
 Foreseeing his inability to raise the amount, he went to see complainant and
asked not to present the check
o Stopping payment and did not return the money and if at the time the check was issued,
he had the intention of stopping payment, there is estafa
o DAUD == sufficient funds but not yet available;
 DAIF insufficient balance (estafa or BP22)
o OTHER PERSON WHO USED THE CHECK (NOT THE ISSUER) MAY BE LIABLE
  Person who used the check issued by another who used the same to purchase
goods, guilty of estafa, if he had knowledge of insufficiency of funds
 Though he did not issue the check, still liable because of his knowledge that his
co-accused had no funds in the bank
o Estafa by issuing bad check is continuing crime
 BP 22
o Section 1 – 1st paragraph elements
1. That a person makes or draws and issues any check
2. That the check is made or drawn and issued to apply on account or for value
3. That the person who makes or draws and issues the check knows at the time of
the issue that he does not have sufficient funds in or credit with the drawee bank
for the payment of such check in full upon its presentation
4. That the check is subsequently dishonored by the drawee bank for insufficiency
of funds or credit, or would have been dishonored for the same reason had not the
drawer, without any valid reason, ordered the bank to stop payment
o Section 1 – 2nd paragraph elements
1. That a person has sufficient funds in or credit with the drawee bank when he
makes or draws and issues a check
2. That he fails to keep sufficient funds or to maintain a credit to cover the full
amount of the check if presented within a period of 90 days from the date
appearing thereon
3. That the check is dishonored by the drawee bank
o Gravamen is issuance of check not the non payment of obligation
o No distinction where in payment of obligation or mere guarantee
o Damage in estafa is not element of BP 22
o BP 22 is against public interest, while Estafa is against property
o No double jeopardy for estafa and BP 22
o Order to Stop Payment is not defense had not the bank been ordered, check would be
dishonored
 Order must be without valid reason (ex. Wrong payee)
o 2nd paragraph punishes the failure to maintain sufficient funds
o Check must be presented within 90 days from the date appearing on check
o Persons liable in corporation are those who actually signed the check in behalf of such
drawer
o Defenses
1. Payment (by drawer or drawee bank) within 5 banking days from notice of
dishonor
 Collected more than sufficient amount to cover the value of the checks
2. Exercise of statutory right to suspend installment payments under PD 957
3. In payment of warranty deposit
4. Failure to encash checks within a reasonable time
5. SEC Order for suspension of payments prior to presentment of check for
payment
 6. No knowledge of insufficiency of funds in corporate account
o Notice of dishonor required
 Estafa – 3 days from receipt of notice of dishonor
 BP 22 – 5 days from receipt of notice of dishonor
o Lack of written notice of dishonor
o Mere oral notice or demand to pay not sufficient
o If by registered email
 Proof of service
o Registry return receipt
 Properly authenticated
 Must appear that the same was served on the addressee
o Registry receipt
o Authenticating affidavit of person mailing the notice of dishonor
 Not sufficient unless mailer personally testify in court
o Required even for closed accounts
o Notice of Dishonor not required when account closed even before issuance of check
o Offender no right to expect or require the bank to honor his check
o No presumption of knowledge of insufficiency when there is no receipt of notice of
dishonor
o Not enough that notice was sent to petitioner, it must show the notice was
received
o Registry card with unauthenticated signature cannot give rise to the presumption
o Notice of dishonor to corporation is not notice to officer who issued the check
o Constructive notice to corporation is not enough because BP 22 is personal
o Policy of SC
o Fine of the amount of the check to double the amount of check, but only up to
200K
 Preferred if there is good faith or clear mistake without taint of
negligence
 1st time offender who contributes to national economy
o Imprisonment of 30 days or more to 1 year
 Even though he had no more account with the bank, closed for 4 years
 Issuing of more than 50 bouncing checks
o Both
o Subsidiary imprisonment in case of insolvency must be expressly stated in the
judgment
o Presumption of knowledge requires presentation of check within 90 days from date of
check
o Presumption is not present when drawer
o Pays the holder the amount due within 5 banking days from receiving notice
o Makes arrangement for payment in full by the drawee of such check within 5
banking days after notice
 o Drawee’s Duty
o Cause to be written, printed, or stamped in plain language or attached to the
check the reason for dishonor or refusal to pay
o No sufficient funds, Drawee should explicitly state
o Order to stop payment, Drawee should state in the notice if there is no sufficient
funds
o The dishonored check + stamp shall be prima facie evidence of
 Making or issuance of the check
 Due presentment to the drawee for payment and the dishonor thereof
 Fact that the same was properly dishonored for the reason written,
stamped or attached by the drawee on such dishonored check
 Estafa by obtaining food or accommodation at a hotel, etc
o 3 ways of committing estafa
o By obtaining food, refreshment, or accommodation at a hotel, inn, restaurant,
boarding house, lodging house, or apartment house without paying therefor, with
intent to defraud the proprietor or manager thereof
o By obtaining credit at any of said establishments by the use of any false pretense
o By abandoning or surreptitiously removing any part of his baggage from any of
said establishments after obtaining credit, food, refreshment, or accommodation
therein, without paying therefor
 Estafa by inducing another to sign any document
o Elements
1. That the offender induced the offended party to sign a document
2. That deceit be employed to make him sign the document
3. That the offended party personally signed the document
4. That prejudice be caused
o There must be inducement
o If willing and ready from the beginning and deceit as to contents of document
different from told, crime is falsification
o Deceit must be employed
o Proof that defendant made statements tending to mislead the complainant as to
the character of the document executed by him
 Estafa by resorting to some fraudulent practice to insure success in gambling
o Making pre-arranged signals
o Game fixing
 Estafa by removing, concealing, or destroying documents
o Elements
1. That there be court record, office files, documents, or any other papers
2. That the offender removed, concealed or destroyed any of them
3. That the offender had intent to defraud another
o If no intent to defraud, destroying court record is malicious mischief (evil motive not to
defraud)
o Destroying the old promissory note dispossessed the party of evidence of debt
 o Concealing document evidencing deposit
 Infidelity in custody of documents vs Estafa
o In infidelity, offender is public officer officially entrusted with the document
o In estafa, private individual not officially entrusted with the document
o In estafa, there is intent to defraud
o In infidelity, the intent to defraud is not required
 Deceit and abuse of confidence may coexist
o Intervened as mediator on sale
 No deceit, no abuse of confidence, no estafa (only civil liability)
 Damage must be capable of pecuniary estimation
o Being deprived of money or property
o Disturbance in property rights (although recovered, there is at least suffered disturbance)
o Temporary Prejudice
o check that was payable to cash, victim could not dispose of the amount and has to
notify the bank to suspend payment
 Basis of penalty is amount of property misappropriated and not delivered / returned before
institution of criminal action
o Acceptance of partial payment does not extinguish criminal liability
o Acceptance of promissory note does not obliterate the offense
 NO estafa unless there is person defrauded
o Procure a loan by deceit thru falsified document but effects full settlement within the
period agreed upon, no estafa, only falsification of public document
 If information allege estafa by means of deceit, cannot be convicted of Estafa with abuse of
confidence
 Complex crime of theft and estafa
o Took the pawn ticket without consent (theft) and redeem the jewels by means of tickets
(estafa using a fictitious name)

Article 316 Other Forms of Swindling

 Swindling by Conveying, Selling, Encumbering, or Mortgaging Any Real Property,

Pretending to Be the Owner of the Same (par 1)
o Elements
1. That the thing be immovable, such as parcel of land or a building
2. That the offender who is not the owner of said property should represent that he
is the owner thereof
3. That the offender should have executed an act of ownership (selling, leasing,
encumbering, or mortgaging)
4. That the act be made to the prejudice of the owner or a third person
o Selling the same land to another after he sold the same and was no longer owner
o The thing disposed must be REAL PROPERTY
o If it is a chattel, crime is estafa (falsely pretending to possess property)
o True buildings are real property by incorporation, erected by the owner or by
usufructuary or lessee
 oThere must be existing real property
o If non-existing, crime is estafa by means of false pretense
o If only rights of possession are transferred, no swindling
o If evidenced by Certificate of Title and claim to be owner, no swindling
o Even if the deceit is practiced against the 2nd purchaser and the damage is incurred by 1st
purchases, there is swindling
o When 1st purchaser is divested of title because 2nd purchases was the first to
register
o Mere intent to cause damage is not sufficient
o because value of the damage is the basis of penalty
o Mere pointing of the property and claim that he is owner, is estafa, not swindling
 Swindling by disposing of real property as free from encumbrance, although such
encumbrance be not recorded (par 2)
o Elements
1. That the thing disposed of be real property
2. That the offender knew that the real property was encumbered, whether the
encumbrance is recorded or not
3. That there must be express representation by the offender that the real property is
free from encumbrance
4. That the act of disposing of the real property be made to the damage of another
o Remortgage of property is swindling
o Shall dispose of the same – includes encumbering or mortgaging
o Encumbrance – includes every right or interest in the land which exists in favor of third
persons
o Mortgage
o an ordinary lease
o an attachment
o the lien of a judgment, and
o an execution sale subject to redemption
o Must have been deceived – meaning he would not have granted the loan had he known
that property was already encumbered
o If loan is already granted when the encumbered property is offered, no swindling
o “Although encumbrance be not recorded”
o Encumbrance must be legally constituted
o Verbal agreement not encumbrance, promise to mortgage is not encumbrance
o Attachment not encumbrance until registered
o Mortgage of land is void if not registered
o Person who executed Deed of Sale free from encumbrance after full payment but
in fact the land has been mortgaged, commits estafa. Although it was registered
with the Registry of Deeds, it does not change the character of the act as estafa
o Thing disposed must be a real property
o If personal property is encumbered, Art 319 applies
 oOffender must know it is encumbered
o If accused did not know that it had been mortgaged, no swindling
o Real property may be registered under any system
o Spanish system of transfer of property
o Land Registration Act – might be more difficult to consummate a crime but it
does not change the nature of the act
o 3 element requires misrepresentation, fraud, or deceit
rd

o Mere second sale is insufficient

o Fraud cannot be presumed
o There must be express representation that property was free from encumbrance
o What is penalized is the fraud or deceit
o If 3rd element not established, no crime
o Mere recital that vendor is absolute owner of the house, no crime
o Silence to such encumbrance does not involve a crime
 Passive attitude is insufficient
o Crime is committed whether the first disposition is recorded or not, it is the false
pretense that constitute fraud
o Law does not require that the victim should make an inquiry in the office of
Registry of Deed first
o There must be damage caused
o If no damage, no crime
o Intention to cause damage is not sufficient
o Not necessary that the act be made to the prejudice to the owner of the land
o Silence as to encumbrance does not involve a crime
 Swindling by Wrongfully Taking by the Owner of His Personal Property from its Lawful
Possessor (par 3)
o Elements
1. That the offender is the owner of personal property
2. That said personal property is in the lawful possession of another
3. That the offender wrongfully takes it from its lawful possessor
4. That prejudice is thereby caused to the possessor or third person
o Pawned his watch, pretending to have money, asked to give the watch back then left
without paying the loan
o Offender must be the owner of personal property
o If third person and his purpose is to return to owner, it is theft with intent that
another will gain
o No theft is owner of the property, unless he charged the possessor with the value
of said property (intent to take another’s money)
o Must be in lawful possession of another
o Took the ring which other has found and gave it to owner
 Finder of lost property has no right to possess the same
o Wrongfully Taking
 o Taking is wrongful when without consent of the possessor or when deceit is
employed
o If with violence, crime is robbery
o If with violence without intent to gain, crime is grave coercion
o To the prejudice of any third person
o Taking the watch but returned the same, no crime because no damage
 Swindling by Executing any Fictitious Contract to the Prejudice of Another (par 4)
o Person who simulates a conveyance of his property to another to defraud creditor
o if the conveyance is real, crime is fraudulent insolvency
o It is still fraudulent insolvency if consideration is fictitious if made for the
purpose of putting the property beyond reach of creditor
 Swindling by Accepting any Compensation for Services not rendered or for labor not
performed (par 5)
o Accepting any compensation of the person who did not render the service or perform
o If there is no fraud, it is solution indebiti (obligation to return)
o What constitutes estafa is malicious failure to return the compensation wrongfully
received
o Money is in payment of debt delivered to a wrong person, Article 316 is not applicable.
Art 315 sub 1(b) applies.
 Swindling by Selling, Mortgaging or Encumbering Real Property or Properties Which the
Offender Guaranteed the Fulfilment of his obligation as Surety (par 6)
o Elements
1. That the offender is a surety in a bond given in a criminal or civil action
2. That he guaranteed the fulfillment of such obligation with his real property or
properties
3. That he sells, morgages, or in any other manner encumbers said real property
4. That such sale, mortgage or encumbrances is
 (a) without express authority from the court or
 (b) made before the cancellation of his bond, or
 (c) before being relieved from the obligation contracted by him
o There must be damage caused
o Not merely potential or speculative
 Before cancellation of said bond and without judicial authority, sold his
own land but no actual damage resulted to estate of the deceased, no
crime
 Syndicated Estafa
o Life Imprisonment to Death if committed by syndicate
o Syndicate consisting of 5 or more persons formed with the intention of carrying out
unlawful
o Elements
1. That estafa or other forms of swindling as defined in Articles 315 and 316 of the
RPC is committed
2. That estafa or swindling is committed by a syndicate of 5 or more persons
 3. That defraudation results in the misappropriation of moneys contributed by
stockholders, or members of rural banks, cooperatives, samahang nayon, or
farmers’ association or of funds solicited by corporations/associations from
general public
o Ponzi scheme – an investment program that offers impossibly high returns and pays these
returns to early investors out of capital contributed by later investors
o Coverage:
1. Also covers commercial banks
2. Committed thru association which operate on funds solicited from general public
3. Number of accused are 5 or more
4. Number of accused is less than 5, second paragraph applies
5. Does not apply regardless of the number when
 Entity soliciting funds from general public is victim and not the means
thru which estafa is committed
 Offenders are not owners or employees who used the association to
perpetrate the crime (Art 312(2a) applies)
o Foundation fits into this category because they operate on funds solicited from general
public

Article 317. Swindling a Minor

 Elements
1. That the offender takes advantage of the inexperience or emotions or feelings of a minor
2. That he induces such minor
1. To assume an obligation or
2. To give release or
3. To execute a transfer or any property right
3. That the consideration is
1. Some loan of money or
2. Credit or
3. Other personal property
4. That the transaction is to the detriment of such minor
 Act of causing minor to sign a receipt for 480 but he received less than considering the child is
fugitive from parents
 Actual proof of deceit is not essential, sufficient that offender took advantage of inexperience or
emotion of minor
 Real property not included because minor cannot convey real property without judicial authority
 Minor is under 18 years old

Article 318. Other deceits

1. By defrauding or damaging another by any other deceit not mentioned in the preceding
articles
2. By interpreting dreams, by making forecasts, by telling fortunes, or by taking advantage of
the credulity of the public in any other similar manner, for profit or gain
  Catch-all provision that covers all kinds of deceit not under Art 316, 316, 317
 Other deceit is necessarily included in Estafa by means of Deceit
 Collecting from passenger but issuing a ticket for shorter journey and pocketed the difference
 Hiring and using the public vehicle without money to pay the fare
 Deceit in this article includes false pretenses and fraudulent acts
o False Pretense: Presenting as domestic help to obtain money in advance
o Fraudulent Act: Giving genuine copper cents appearance of silver pasetas to defraud third
persons of real value of coin
 False representation that it was brand new
o Negligence on the part of the vendee to inspect is not a defense

CHATTERL MORTGAGE

Article 319. Removal, sale, or pledge of mortgaged property

 PENALTY: AMayor or Fine = 2x Value of Property

 PURPOSE: Protection of mortgagee who should be able to have a ready access to, and easy reach
of, the property subject of the mortgage
 ACTS PUNISHABLE:
o Knowingly removing any personal property mortgaged under the Chattel Mortgage Law
to any province or city other than the one in which it was located at the time of the
execution of the mortgage, without the written consent of the mortgagee or his executors,
administrators or assigns.
o Selling or pledging personal property already pledged, or any part thereof, under the
terms of the Chattel Mortgage Law, without the consent of the mortgagee written on the
back of the mortgage and noted on the record thereof in the office of the register of deeds
of the province where such property is located
 ELEMENTS OF KNOWINGLY REMOVING MORTGAGED PERSONAL PROPERTY
1. That personal property is mortgaged under the Chattel Mortgage
2. That the offender knows that such property is so mortgaged
3. That he removes such mortgaged personal property to any province or city other than the one
in which it was located at the time of the execution of the mortgage
4. That the removal is permanent
5. That there is no written consent of the mortgagee or his executors, administrators, or assigns
to such removal
 Chattel mortgage must be valid and subsisting
o If it does not contain an affidavit of good faith and unregistered, it is void and cannot be
basis for criminal prosecution
 Offender is any person who removes the property to another province knowing it to be
mortgaged, even if such offender is third person
 Indispensable that the document be registered
 No felonious intent – when transfer of property is due to change in residence
 Removal of personal property must be coupled with intent to defraud
o If due to closure of the station, no crime
 Filing civil action for collection is abandoning the mortgage as basis for relief
o Foreclosure of the chattel mortgage, not abandoning
o When civil action for collection is filed, effecr is that accused is relieved of criminal
responsibility
 ELEMENTS OF SELLING / PLEDGING PERSONAL PROPERTY ALREADY PRIVILEGED
o That personal property is already pledged, under the terms of the Chattel Mortgage Law
o That the offender, who is the mortgagor of such property, sells or pledges the same or any
part thereof
o That there is no consent of the mortgagee written on the back of the mortgage and noted
on the record thereof in the office of the registry of deed
 House may be subject of chattel mortgage by agreement of the parties
 Second chattel mortgage is included aside from pledging or selling (Spanish term is hipoteca)
 Consent must be
1. In writing
2. On the back of the mortgage
3. Noted on the record thereof in the office of the register of deeds.
 If consent is written only on a separate piece of paper, there is violation of Art 319
 Damage to the mortgagee is not essential
 DISTINGUISHED FROM ESTAFA
1. Both offense there is selling of mortgaged property
2. In estafa, real property is involved, here is personal property
3. In estafa, sufficient that it be sold free, even the vendor obtained the consent in writing; here,
mere failure to obtain the consent gives rise to the crime
4. In estafa, it is to protect the purchaser, here is to protect mortgagee