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Concepts of Estafa

Estafa, also known as swindling, is a felony committed by dolo (malice). The essence of the crime is the unlawful abuse of confidence or deceit in order to cause damage. It is considered a continuing or transitory crime, meaning its elements may occur and be consummated in different territorial jurisdictions. Estafa is a crime against property.

Modes of Committing Estafa

Estafa can be committed through various means, primarily categorized under Article 315 of the Revised Penal Code. The sources detail specific modes:

• Estafa with Unfaithfulness [Art. 315, No. 1(a)]: This occurs where the offender has an onerous obligation to deliver something of value and alters its substance, quantity, or quality, causing damage or prejudice. This type of Estafa involves an offender who does not receive or deliver a thing under an onerous obligation in accordance with what was agreed upon, where the obligation is not gratuitous.
• Estafa with Abuse of Confidence or Misappropriation [Art. 315, No. 1(b)]: This involves receiving money, goods, or other personal property in trust, or on commission, or for administration, or under any other obligation involving the duty to make delivery of, or to return, the same. The offender then misappropriates or converts such money or property, or denies receiving it. The essence of this mode is the appropriation or conversion to the prejudice of the entity to whom a return should be made. This includes cases like association treasurers misappropriating funds received in trust. However, the owner of the property or funds is considered the owner, not the bank where it is deposited. Misappropriation or conversion must be proven. Failure to account for or return property held in trust is circumstantial evidence of misappropriation. Simple failure to return money by an investor who went bankrupt does not constitute Estafa under this provision. A non-refund of advance payment in a transaction may not be Estafa if the obligation is civil, not criminal. This mode of Estafa can be committed in both material and juridical possession contexts.
• Estafa by Means of Deceit [Art. 315, 2(a)]: This involves using a fictitious name, falsely pretending to possess power, influence, qualifications, property, credit, agency, business, or imaginary transactions, or by means of other similar deceits. It is essential that the false statement or representation is the very cause or the only motive which induces the offended party to part with their money. Deceit is the main element of this crime under Art. 315(2)(a). It is a species of fraud, a matter of fact whether by words or conduct. Proof of pecuniar damage sustained by the complainant arising from reliance on the fraudulent representation is required.
• Estafa by Postdating or Issuing a Check [Art. 315, 2(d)]: This involves defrauding another by postdating a check, or issuing a check in payment of an obligation, when the offender does not have sufficient funds in the bank to cover the amount of the check. It is necessary that the offender obtains money or property from the offended party by reason of the issuance of the check. If the check is dishonored due to insufficiency of funds, it is an element. Unlike violation of B.P. Blg. 22, Estafa under this provision requires the offender to obtain something of value by means of the check. Deceit and damage are essential elements of Estafa by check issuance.

Elements

While specific elements vary per mode, general elements often include:

• An act performed by the offender.
• Damage or prejudice to the offended party or third person.
• Fraudulent intent (dolo or malice).

For Estafa by abuse of confidence [Art. 315, No. 1(b)]:

1. That money, goods, or other personal property was received by the offender in trust, or on commission, or for administration, or under any other obligation involving the duty to make delivery of, or to return, the same.
2. That there was misappropriation or conversion of such money or property, or denial of its receipt.
3. That such misappropriation or conversion or denial is to the prejudice of another.
4. That there is demand made by the offended party to the offender.

For Estafa by means of deceit [Art. 315, 2(a)]:

1. By using a fictitious name or by falsely pretending to possess power, influence, qualifications, property, credit, agency, business or imaginary transactions.
2. That the false pretense or fraudulent representation referred to under the first element exists when the accused uses a fictitious name, pretends to possess power, etc..
3. That the deceit is the main element.

For Estafa by postdating or issuing a check [Art. 315, 2(d)]:

1. That the offender postdated a check, or issued a check in payment of an obligation.
2. That the offender obtained money or property from the offended party by reason of the issuance of the check.
3. That the check was dishonored by the bank due to insufficient funds.
4. That the offended party suffered damage.

Related Concepts and Distinctions

• Complex Crime: Estafa can be committed as a complex crime, such as Estafa through Falsification of Public Document or Commercial Document. In such cases, there are two component crimes (Estafa and Falsification) but they are treated as only one complex crime subject to a single criminal liability. Falsification is considered a necessary means to commit Estafa. Damage caused by the falsified document is an element of Estafa.
• Vs. Theft: In Estafa, the offender receives possession of the property with the consent of the owner, although the consent is vitiated by fraud or abuse of confidence. In theft, the offender takes possession without the owner's consent. In Estafa, conversion of property received gives rise to the crime; where both material and juridical possessions are transferred, misappropriation constitutes Estafa.
• Vs. Malversation: Estafa involves misappropriation or conversion of private property, while malversation involves public funds or property committed by a public officer who is accountable for the duties of his office. Estafa by misappropriation and malversation are similar in nature.
• Vs. Violation of B.P. Blg. 22: Estafa by check issuance requires obtaining something of value by means of the check, focusing on the deceit. Violation of B.P. Blg. 22 requires the mere act of issuing a check that is subsequently dishonored, regardless of whether value was obtained. Violation of B.P. Blg. 22 is primarily a crime against public interest and the banking system, while Estafa is primarily a crime against property.

Nature as a Continuing Crime

Estafa is a continuing or transitory crime. The crime is committed where the criminal action is intended to take place and where the damage or prejudice occurs. When committed in different jurisdictions, the first court taking cognizance of the case excludes the other. Estafa committed against several victims through repeated acts of misrepresentation or deceit over time constitutes a series of acts leading to separate criminal liabilities for each victim or transaction, not necessarily a single continuing offense unless the acts are interconnected and result from one intent.

Civil Liability

Liability for Estafa arising from contractual relations is criminal liability ex delicto, not civil liability ex contractu. The finding that elements of Estafa do not exist means there is no crime; therefore, civil liability ex delicto cannot be awarded as it cannot be sourced from something that does not exist. Civil liability ex delicto cannot be awarded if there is no act or omission constituting criminal fraud.

Absolutory Cause

Under Article 332 of the Revised Penal Code, crimes against property including Estafa committed by spouses, ascendants, descendants, and relatives by affinity in the same line, do not entail criminal liability. This is considered an absolutory cause. Affinity in the same line refers to the relationship one spouse has to the blood relatives of the other spouse, arising from marriage. There is a view that relationship by affinity terminates with the dissolution of the marriage.