EIGHTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
SENATE
s. No. 1 3 0 7
20 
FEB -3 All
RECC."£0 HV: _
Introduced by SENATOR LEILA M. DE LIMA
AN ACT
REDEFINING THE CRIME OF SYNDICATED ESTAFA, AMENDING FOR 
THE PURPOSE SECTION i OF PRESIDENTIAL DECREE NO. 1689
EXPIANATORY NOTE
In a country where poverty is pervasive, escape is sought by those who want to 
free themselves from generations-old bondage that they have inherited. This desire 
has forced many unsuspecting Filipinos who toil under the scorching heat of the sun 
for a meager amount of money, to trust persons who take advantage of their 
desperate situations, with their hard-earned money - in the hopes of finally receiving 
relief.1 We have all heard their story -  of how life savings dried up after having been 
persuaded by those whose aim was nothing but to abuse the confidence reposed in 
them.
Syndicated estafa is a social menace that not only preys on our countrymen, 
but also erodes our faith in our economic system. While there are those who operate 
alone, most operate in a group. By using elaborate scams to abuse the confidence of 
their victims, the perpetrators who operate in groups are able to commit this crime 
against multiple victims and over an extended period of time.
1 Orejas, Tonette. "They never learn: Victims of PI 20-M scam in Pampanga seek NBI help. ” 05 August 2019. 
Inquirer. Retrieved from: https://newsinfo.inquirer.net/1150371/they-never-leam-victims-of-pl20-m-scam-in- 
pampanga-seek-nbi-help


The Supreme Court, in Galvez v. Court of Appeals,2 3 enumerated the elements 
of syndicated estafa, to wit: (a) estafa or other forms of swindling as defined in 
Article 315 and 316 of the Revised Penal Code is committed; (b) the estafa or 
swindling is committed by a syndicate of five or more persons; and (c) defraudation 
results in the misappropriation of moneys contributed by stockholders, or members 
of rural banks, cooperatives, “samahang nayon(s),” or farmers’ association or of 
funds solicited by corporations/associations that receive contributions from the 
general public who misappropriated the contributions. However, under our present 
set up, persons accused of syndicated estafa may evade the higher penalty of 
reclusion temporal to reclusion perpetua as provided in P.D. No. 1689 by simply 
alleging that the victim failed to establish that the crime was committed by a 
syndicate of five or more persons conspiring or confederating with one another. 
Thus, the purpose of the law in increasing the penalty for certain forms of swindling 
or estafa is easily defeated.
In order, therefore, to properly punish the syndicates behind these elaborate 
scams, we need to revise our existing law to punish offenders with a minimum 
required number in a group. This way, less burden is placed upon our law enforcers 
to arrest all the offenders immediately, and at least two members of the syndicate can 
already be put to trial.
This proposed bill seeks to amend the definition of syndicate by lowering the 
number of perpetrators from “five (5) or more persons” to “two (2) more persons”, or 
a minimum of tw'o people to qualify estafa or swindling as syndicated estafa, with 
the end in view of protecting the public from a systematic fraud which “erodes the 
confidence of the public in the banking and cooperative system, contravenes public 
interest and constitutes economic sabotage that threatens the stability of the 
nation. ”3
Approval of this measure is earnestly sought.
LEILA M. DE LllVlk
2 GR No. 187919. (Feb 20, 2013)
3 Presidential Decree No. 1689. (April 6, 1980)


EIGHTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
ci fl5‘ S>! rcrnrp
20 
FEB-3 All :12
SENATE
s. No. 1307
Introduced by SENATOR LEILA M. DE LIMA
AN ACT
REDEFINING THE CRIME OF SYNDICATED ESTAFA, AMENDING FOR 
THE PURPOSE SECTION i OF PRESIDENTIAL DECREE NO. 1689
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congi'ess assembled:
1 
SECTION 1. Section 1 of Presidential Decree No. 1689 is hereby amended to
2 
read as follows:
3 
“Section 1. Any person or persons who shall commit estafa
4 
or other forms of swindling as defined in Article 315 and 316 of the
5 
Revised Penal Code, as amended, shall be punished by life
6 
imprisonment to death if the swindling (estafa) is committed by a
7 
syndicate consisting of [five] TWO or more persons formed with
8 
the intention of carrying out the unlawful or illegal act, transaction,
9 
enterprise or scheme and the defraudation results in the
10 
misappropriation of moneys contributed by stockholders, or
11 
members of rural banks cooperative, “samahang nayon(s)”, or
12 
farmers’ 
association, 
or 
funds 
solicited 
by
13 
corporations/associations from fhe general public.


1 
“When not committed by a syndicate as above defined, the
2 
penalty imposable shall be reclusion temporal to reclusion
3 
perpetua if the amount of the fraud exceeds ioo,ooo pesos.”
4 
Sec. 2. Repealing Clause. -  All laws, decrees, orders, rules and regulations, or
5 
other issuances or parts thereof inconsistent with the provisions of this Act are hereby
6 
repealed or amended accordingly.
7 
Sec. 3. Effectivity Clause. -  This Act shall take effect fifteen (15) days after its
8 
publication in the Official Gazette or in two (2) newspapers of general circulation.
Approved,