DECREE INCREASING THE PENALTY FOR CERTAIN FORMS OF ESTAFA
(P.D. No. 1689)

INCREASING THE PENALTY FOR CERTAIN FORMS OF SWINDLING OR ESTAFA.

Whereas, there is an upsurge in the commission of swindling and other forms of frauds in rural banks, cooperatives, "samahang nayon(s)," and farmers' associations or corporations/associations operating on funds solicited from the general public;

Whereas, such defraudation or misappropriation of funds contributed by stockholders or members of such rural banks, cooperatives, "samahang nayon(s)," or farmers' associations, or of funds solicited by corporations/associations from the general public, erodes the confidence of the public in the banking and cooperative system, contravenes the public interest, and constitutes economic sabotage that threatens the stability of the nation;

Whereas, it is imperative that the resurgence of said crimes be checked, or at least minimized, by imposing capital punishment on certain forms of swindling and other frauds involving rural banks, cooperatives, "samahang nayon(s)," farmers' associations or corporations/associations operating on funds solicited from the general public;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby decree and order as follows:

Historical text and later penalty note. This is Presidential Decree No. 1689 as issued on April 6, 1980. The death penalty may no longer be imposed: Sections 1 and 2 of R.A. No. 9346 prohibit it and substitute reclusion perpetua or life imprisonment, depending on whether the law violated uses the Revised Penal Code's names for penalties. In People v. Mateo (9 October 2017), the Supreme Court affirmed life imprisonment for syndicated estafa and held that R.A. No. 10951 did not amend the penalty in this decree. The 100,000-peso figure in the second paragraph is the original text.

SECTION 1. — Any person or persons who shall commit estafa or other forms of swindling as defined in Article 315 and 316 of the Revised Penal Code, as amended, shall be punished by life imprisonment to death if the swindling (estafa) is committed by a syndicate consisting of five or more persons formed with the intention of carrying out the unlawful or illegal act, transaction, enterprise or scheme, and the defraudation results in the misappropriation of moneys contributed by stockholders, or members of rural banks, cooperatives, "samahang nayon(s)," or farmers' associations, or of funds solicited by corporations/associations from the general public.

When not committed by a syndicate as above defined, the penalty imposable shall be reclusión temporal to reclusión perpetua if the amount of the fraud exceeds 100,000 pesos.

SEC. 2. — This Decree shall take effect immediately.

Done in Manila, Philippines, this 6th day of April, in the year of Our Lord, nineteen hundred and eighty.

(Sgd.) FERDINAND E. MARCOS President of the Philippines

By the President:

(Sgd.) JUAN C. TUVERA Presidential Assistant