- Petitioner
- People
- Respondent
- Bernard Mirto
- Citation
- G.R. No. 193479
- Court
- Supreme Court
- Decided
- October 19, 2011
Qualified theft committed by company branch manager who misappropriated customer payments by depositing them in personal accounts instead of…
Summary
Bernard G. Mirto, branch manager of Union Cement Corporation in Tuguegarao, was convicted of four counts of qualified theft for misappropriating over PHP 2.2 million in customer payments from May-June 2001. Instead of remitting 'Pay to Cash' checks from cement customers to UCC, he deposited them in his personal Security Bank account and accounts of one Magno Lim. The Supreme Court affirmed his conviction, finding all elements of qualified theft present including grave abuse of confidence given his managerial position with access to company funds. The Court rejected his defense that he held the funds in trust as an agent, ruling he was merely an employee with material possession only. While sentenced to four penalties of reclusion perpetua for the separate counts, the Court limited his total imprisonment to 40 years under Article 70 of the Revised Penal Code on successive service of sentences. The case demonstrates the criminal liability of employees who abuse positions of trust to misappropriate employer funds.
Focus of dispute
Qualified theft committed by company branch manager who misappropriated customer payments by depositing them in personal accounts instead of remitting to employer
Legal facts
Bernard G. Mirto was branch manager of Union Cement Corporation (UCC) for Tuguegarao City area. From May 25 to June 27, 2001, he collected payments from cement customers totaling PHP 6,572,750 in the form of 'Pay to Cash' checks. Instead of remitting these collections to UCC, he deposited them in his personal Security Bank account (No. 0301-261982-001) and in accounts of one Magno Lim at MetroBank and Equitable PCIBank. On June 29, 2001, he confided his misdeeds to fellow manager Restituto Renolo and wrote a handwritten admission letter to Assistant Vice-President Reynaldo Santos admitting to misusing PHP 6,380,650 of company funds. UCC conducted internal audit and filed seven criminal complaints for qualified theft.
Judgement and reasoning
Court of Appeals (CA): Affirmed RTC decision finding accused-appellant guilty of qualified theft. Rejected arguments that accused had juridical possession of checks, finding he only had material possession as employee with no right to retain payments against UCC. Confirmed presence of grave abuse of confidence as qualifying circumstance.
Regional Trial Court (RTC) Branch 5, Tuguegarao City, Cagayan: Found accused guilty beyond reasonable doubt of qualified theft in Criminal Case Nos. 9034, 9115, 9117, and 9130, but acquitted in Criminal Case Nos. 9120, 9123, and 9126. Relied on accused's admission when he testified and his handwritten confession letter. Found he had no authority to deposit checks in personal accounts and that he held only material possession, not juridical possession of funds. Sentenced to reclusion perpetua and ordered restitution of PHP 2,279,350.
Supreme Court (SC): Affirmed conviction with modification. Found all elements of qualified theft present: (1) taking of personal property (checks/funds), (2) belonging to another (UCC), (3) intent to gain (depositing in personal accounts), (4) without owner's consent (UCC's immediate action upon discovery), (5) without violence/intimidation, and (6) grave abuse of confidence (as branch manager with access to funds). Rejected defense of agency, finding accused was employee with only material possession. Modified penalty to recognize four separate convictions requiring four penalties of reclusion perpetua, but limited total imprisonment to 40 years under Article 70 of RPC on successive service of sentences.