Estafa by Abuse of Confidence
Misappropriation or conversion of money, goods, or property received in trust, on commission, or for administration — where demand and accounting records are the decisive evidence.
Criminal Litigation
Whether you were defrauded or stand accused, estafa cases turn on documents, demand, and the paper trail of money — the kind of case a CPA-lawyer firm is built to fight.
Overview
Estafa, or swindling, is punished under Article 315 of the Revised Penal Code. It takes several forms: estafa by abuse of confidence — the misappropriation or conversion of money or property received in trust, on commission, or for administration, where a prior demand is important evidence; estafa by deceit or false pretenses, where the offender obtains money or property through fraud employed before or at the time of the transaction; and estafa by issuing worthless checks under Article 315(2)(d). Penalties are graduated by the amount involved, under thresholds adjusted by Republic Act No. 10951.
The line that decides many cases is the one between crime and contract. Mere failure to pay a loan is not estafa — deceit or misappropriation must exist. As part of our criminal litigation practice, we defend accused persons against complaints that criminalize what is really a civil debt, and we act as private prosecutor for complainants who were genuinely defrauded, pursuing both conviction and restitution. Where the fraud involves a bounced check, we advise on the interplay with BP 22, which may be pursued alongside estafa.
Our distinctive advantage is financial. Estafa is ultimately about where money went, and our forensic accounting practice, led by a CPA-lawyer and former BSP Chief Examiner, traces funds through accounts, ledgers, and records — building the misappropriation case for complainants, or dismantling an inflated one for the accused.
Scope of Work
Misappropriation or conversion of money, goods, or property received in trust, on commission, or for administration — where demand and accounting records are the decisive evidence.
False pretenses, fictitious names, and fraudulent representations of power, property, or business employed to obtain money or property from the offended party.
Estafa under Article 315(2)(d) for checks issued without or with insufficient funds — often filed alongside BP 22, which punishes different elements.
Representation from preliminary investigation through trial and appeal — including defenses that the transaction was a loan or ordinary business deal, not a crime.
Acting for complainants as private prosecutor — building the criminal case with the public prosecutor while pursuing restitution of the amounts defrauded.
CPA-lawyer analysis of bank records, ledgers, and documents to trace where money actually went — proof of conversion for one side, or its refutation for the other.
Common Questions
Not by itself. Mere failure to pay a loan or debt is a civil matter, not a crime. Estafa requires something more — deceit at the time the money was obtained, or misappropriation of money or property that was received in trust rather than as a loan. If the borrower simply cannot or will not pay, the remedy is a civil collection case. If the money was obtained through false pretenses or was entrusted for a specific purpose and then converted, estafa may lie. We assess which situation you are actually in before any case is filed.
Estafa under Article 315(2)(d) requires deceit — the check must have been the reason the offended party parted with money or property, and the issuer must have known it was worthless. BP 22 is simpler: it punishes the act of issuing a check that bounces, without need to prove deceit or damage. Because the elements are different, the two charges can be filed together over the same check. Estafa generally carries heavier penalties; BP 22 is often penalized with a fine.
Penalties for estafa are graduated based on the amount involved, under thresholds that were substantially adjusted by Republic Act No. 10951 in 2017. Smaller amounts may be punished with arresto mayor, while very large amounts can reach reclusion temporal. On top of imprisonment, the accused faces civil liability to return the amount defrauded with interest. Because the penalty turns on the amount proved, how the figures are established — and challenged — matters greatly in these cases.
The nature of the transaction is often the whole case. If the money was received as a loan, ownership passed to you, and your obligation to repay is civil — there is no trust to betray and no misappropriation to punish. The prosecution must prove that you received the money in trust, on commission, or for administration, or that you employed deceit to obtain it. Receipts, messages, and the parties' conduct usually reveal the true agreement, and we build the defense from that documentary record.
The civil aspect — restitution of the amount involved — can always be settled between the parties. The criminal aspect is different: estafa is a public offense, so payment or an affidavit of desistance does not automatically erase criminal liability, and the effect of a settlement depends on the stage of the case and its circumstances. In practice, an early and well-structured settlement often shapes how the case proceeds. We advise both complainants and accused on how to approach settlement properly.
Work With Us
Reach us via Call, Viber, or WhatsApp at 0917-187-1951, or send us the documents and details of the transaction for an initial assessment.
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