Sheriff Albert A. Dela Cruz of the Sandiganbayan Security v. Wellex Group

Summary

This case arose from the forfeiture of former President Estrada's ill-gotten wealth following his plunder conviction. Wellex Group borrowed P500 million from an account managed by BDO under Estrada's alias 'Jose Velarde,' securing the loan with Waterfront Philippines shares. When the IMA Account was forfeited as ill-gotten wealth, the State was subrogated to BDO's creditor rights. The RTC ruled that Wellex's loan obligation was extinguished by prescription after 10 years without collection. The Supreme Court reversed, holding that the State's constitutional and statutory right to recover ill-gotten wealth is imprescriptible, even from transferees like Wellex. The Court emphasized that Section 15, Article XI of the 1987 Constitution and the Anti-Plunder Law override general Civil Code prescription rules, making the defense of prescription unavailable to transferees of ill-gotten wealth regardless of good faith.