Fraud raps filed vs Pacific Plans execs
MANILA, Philippines — A group of customers of troubled pre-need plan firms filed on Friday a complaint before the Department of Justice (DoJ) against executives of Pacific Plans Inc. and the Yuchengco Group of Companies.
The Parents Enabling Parents (PEP), led by Victoria Gomez Jacinto, sued the directors and officers of Pacific Plans, among them Ambassador Alfonso Yuchengco, Helen Yuchengco Dee, Alfonso Yuchengo III and Yvonne Yuchengco, for syndicated estafa (fraud) and swindling.
The complaint alleged the Pacific Plans officers “defrauded at least 34,000 plan holders by inducing them to purchase open-ended educational plans based on their false pretense that they have the capability and the willingness to assume the risks inherent in contracts of this nature, which they now refuse to do so.”
Pacific Plans filed a petition for corporate rehabilitation in 2005, saying it was in financial distress and asking it be allowed to suspend payment to its plan holders.
But the complainants said Pacific Plans’ own financial statements and an audit by the Securities and Exchange Commission (SEC) confirm the pre-need firm was liquid and solvent at the time it filed for corporate rehabilitation.
They noted that, in 2006, the SEC and the Court of Appeals ruled that Pacific Plans did not need corporate rehabilitation.