On April 26, 2006, aggrieved planholders filed Syndicated Estafa Charges
against the Directors and Officers of Pacific Plans, Inc. before the Office
of the City Prosecutor of Manila. The named Respondents in the Criminal
Complaints are Ambassador Alfonso T. Yuchengco, Helen Yuchengco Dee, Alfonso
S. Yuchengco III, Alfonso S. Yuchengco, Jr., Yvonne S. Yuchengco, Susanne
Yuchengco Santos and others. Syndicated Estafa, a non-bailable offense which
carries the penalty of life imprisonment to death, is punishable under P.D.
1689, in relation to Article 315 of the Revised Penal Code.
In their Criminal Complaints, Philip Piccio and other planholders alleged
that Pacific Plans, Inc., through its Directors and Officers, misrepresented
to the general public that they will pay, irrespective of cost at the time
of availment, the tuition and standard school fees for enrollment of their
Traditional Pacific Educational Plan scholars. Through such
misrepresentations, they pretended that they had the capacity to honor their
contractual obligations and assume the risks inherent in their open-ended
plans and were able to induce members of the general public to part with
their hard-earned money to purchase them.
In said Complaints, the Complainants averred that Pacific Plans, through its
Directors and officers, self-engineered and artificially contrived their
state of "financial distress" by transferring the funds and assets of
Pacific Plans to Lifetime Plans, Inc. Complainants further stated that
Pacific Plans subsequently filed a Petition for Corporate Rehabilitation
with Suspension of Payments with the Regional Trial Court of Makati City in
order to evade its contractual obligations to its planholders, despite the
fact that the findings of the Securities and Exchange Commission (SEC) and
its own audited financial statements showed that the company is liquid and
solvent. In said case, Pacific Plans proposed a mandatory swap of all
open-ended plans with fixed-value plans which offers a refund of their total
payments with a lower yield of 7% per annum to be paid out in the year 2010.
Philip Piccio is the President of PEP Coalition, Inc., a coalition of
aggrieved planholders of Pacific Plans, Inc., who have joined together in
their concerted effort and crusade to promote the protection of consumers,
good corporate governance, and a morally responsible pre-need industry. *The
PEP Coalition, Inc. has spearheaded the holding of a National Convention of
Pre-Need Victims to be held this coming Saturday, April 29, 2006, 8:00 A.M.
to 12:00 noon at the St. Paul's Pasig Gym. Expected to attend the National
Convention are planholders from Pacific Plans, CAP, Platinum, Capitol and
TPG. *Some 1,000,000 students who are the beneficiaries of these
educational plans face the imminent prospect of not enrolling in school
because of this controversy hounding the pre-need industry.