Second Velarde account falls

It seems that the diligent efforts of Sheriff Edgardo Urieta have paid off.

As early as 2002, the sheriff had served notice on what is now a P1-billion jackpot for the Sandiganbayan.

The Jose Velarde account at Equitable-PCI Bank – silent and untouched for over six years of Estrada trial and even up to the pardon – has grown more than P300 Million with interest earned and given the appreciation of the shares of stock.

Equitable-PCI Bank is now Banco de Oro.

If forfeited, this is the second Jose Velarde account that falls into the hands of government in the plunder case. In the guilty verdict handed down by the Sandiganbayan, the court had forfeited in favor of the government another Jose Velarde account worth P189 Million.

But this time, the government had better luck: this Velarde account actually has money in it. The Velarde account earlier forfeited as part of verdict had been emptied before the government could freeze it. The Velarde account at the Equitable PCI Juan Luna- Binondo branch had a balance of only P2,770.69 as of Sept 18, 2002.

The Sandiganbayan had ordered frozen the now P1-billion worth Velarde account at the same time as the freezing of the emptied Velarde account.

On August 27, 2002, the Sandiganbayan ordered the Sheriff to attach a number of properties and accounts in connection with the plunder case against former President Joseph Estrada, including the accounts registered in the name of Jose Velarde.

On September 30, 2002, Urieta served a Notice of Garnishment to Equitable-PCI Bank.

In less than a week, on October 4, the bank replied that their Trust Banking Division is a holder of the accounts and assets of Jose Velarde under Personal IMA Trust Account # 101-78056-1.

As of October 2, 2002, the bank detailed the status of the account as follows:

• Promissory Note and Chattel Mortgage – P500 Million (Due date August 2, 2000)
  
• Shares of Stock (Initial Collateral) – 450 Million Waterfront Phil. Shares
  Duly registered under chattel mortgage/ duly annotated in the transfer books on July 28, 2000.
  As of June 07, 2002, the value was at P.25/ share.
  
• Shares of stock (additional collateral) – 300 Million Wellex shares
  Duly registered under chattel mortgage/ duly annotated in the transfer books on September 4, 2000.
  As of June 7, 2002, the value was at P.22/ share.
  
• Common Trust Fund Investment – P75,451,344.19

The bank’s response to Urieta at that time duly noted that the accounts and assets had been put on hold since January 29, 2001 under a Constructive Distraint issued by Bureau of Internal revenue Deputy Commissioner Lilian B. Hefti.

In 2002, the 450 million Waterfront shares were only worth P112.5 million at P.25 per share. At the current P.95 per share, the Waterfront investrment grew by P315 Million.

The Wellex shares, then worth P66 million at P.22 per share, will now be P18 million more.

The common Trust Fund has increased by more than P20 million compared to its balance in 2002.

In 2002, as ordered by the court, Urieta served notices of attachment to certain properties and accounts of Yolanda Ricaforte and Charlie “Atong Ang, and the deposits under the name of the Erap Muslim Youth Foundation.

This in pursuit of the P4.1-billion of allegedly ill-gotten wealth which the prosecution sought to prove in the historical plunder case.

At the trial’s close, the anti-graft court in its ruling forfeited -- based on what had been proven -- a fourth of what the prosecutors claimed Estrada had amassed: monies worth more than P700 million and a notoriously fabulous mansion in an upscale neighborhood in New Manila, Quezon City.