ASG Law

Tag: Fencing

  • Understanding Fencing in the Philippines: Legal Insights and Practical Implications

    Key Takeaway: The Importance of Proving Legitimate Ownership in Fencing Cases

    Benito Estrella y Gili v. People of the Philippines, G.R. No. 212942, June 17, 2020

    In the bustling world of commerce, the line between legitimate business and criminal activity can sometimes blur. Imagine a scenario where a business owner unknowingly purchases stolen goods, only to find themselves entangled in a legal battle over the crime of fencing. This is precisely what happened in the case of Benito Estrella y Gili, where the Supreme Court of the Philippines upheld a conviction for violating the Anti-Fencing Law. The central legal question revolved around whether Estrella knew or should have known that the hydraulic fluid he possessed was stolen, highlighting the critical importance of proving legitimate ownership in such cases.

    Legal Context: Understanding the Anti-Fencing Law

    The Anti-Fencing Law, formally known as Presidential Decree No. 1612, was enacted to combat the proliferation of stolen goods in the market. Fencing is defined as the act of any person who, with intent to gain, deals in any article or item known to be derived from the proceeds of robbery or theft. The law aims to deter individuals from engaging in the sale or purchase of stolen property, thereby reducing the incentive for thieves.

    Under Section 2 of PD 1612, the elements of fencing include: the commission of a robbery or theft, the accused’s possession or dealing with the stolen item, the accused’s knowledge or presumed knowledge that the item was stolen, and the intent to gain. Importantly, fencing is considered a malum prohibitum, meaning the act itself is illegal regardless of the accused’s intent.

    A crucial aspect of the law is the presumption of fencing, stated in Section 5: “Mere possession of any good, article, item, object, or anything of value which has been the subject of robbery or thievery shall be prima facie evidence of fencing.” This means that if someone is found in possession of stolen goods, they must prove that they acquired them legally.

    Case Breakdown: The Journey of Benito Estrella y Gili

    Benito Estrella y Gili ran a business called Aerojam Supply and Trading, which sold aircraft spare parts and chemicals. In 1999, Philippine Airlines (PAL) noticed an unusual increase in the consumption of Skydrol LD-4 hydraulic fluid despite downsizing its operations. Suspecting theft, PAL conducted an investigation and discovered that Estrella was selling the same fluid to Air Philippines at a suspiciously low price.

    On June 22, 1999, police apprehended Estrella as he attempted to deliver three pails of Skydrol to Air Philippines. When asked for documentation, Estrella could not produce any and mentioned a person named Jupel as the source of the goods, who never appeared. The fluid’s manufacturer, Solutia, Inc., confirmed that it had only sold Skydrol to PAL, not to Estrella’s company.

    The Regional Trial Court (RTC) convicted Estrella of fencing, a decision upheld by the Court of Appeals (CA). Estrella appealed to the Supreme Court, arguing that the evidence against him was concocted and that he had been framed. However, the Supreme Court found no merit in his appeal, affirming the conviction.

    The Court emphasized the importance of the presumption of fencing, stating, “Notably, Fencing is a malum prohibitum, and PD 1612 creates a prima facie presumption of Fencing from evidence of possession by the accused of any good, article, item, object or anything of value, which has been the subject of robbery or theft.” Estrella’s failure to provide legitimate documentation or prove his source of the Skydrol was pivotal in the Court’s decision.

    Practical Implications: Navigating the Risks of Fencing

    This ruling underscores the need for businesses to maintain meticulous records of their inventory and transactions. Companies dealing in high-value or specialized goods must ensure they can prove the legitimacy of their supply chain. Failure to do so can lead to severe legal consequences, as seen in Estrella’s case.

    For individuals and businesses, this case serves as a reminder to be vigilant when purchasing goods, especially from unknown or unverified sources. The presumption of fencing places the burden of proof on the possessor, making it crucial to verify the origin of any items in question.

    Key Lessons:

    • Always maintain thorough documentation of your inventory and transactions.
    • Verify the legitimacy of your suppliers and the origin of goods before purchasing.
    • Be aware of the legal risks associated with dealing in potentially stolen items.

    Frequently Asked Questions

    What is fencing? Fencing is the act of buying, selling, or possessing stolen goods with the intent to gain.

    How can I avoid being charged with fencing? Ensure you have proper documentation for all goods and verify the legitimacy of your suppliers.

    What is the presumption of fencing? Under the Anti-Fencing Law, mere possession of stolen goods is considered prima facie evidence of fencing, shifting the burden of proof to the possessor.

    Can I be charged with fencing if I didn’t know the goods were stolen? Yes, because fencing is a malum prohibitum, the intent is not necessary; possession of stolen goods is enough to raise the presumption of guilt.

    What should I do if I’m accused of fencing? Seek legal advice immediately and gather any evidence that can prove the legitimate source of the goods in question.

    How does this ruling affect businesses? Businesses must be diligent in verifying their supply chains and maintaining records to avoid legal issues related to fencing.

    ASG Law specializes in criminal law and commercial transactions. Contact us or email hello@asglawpartners.com to schedule a consultation.

  • Possession of Stolen Goods: Establishing Knowledge in Fencing Cases

    The Supreme Court affirmed the conviction of Reymundo Masil for fencing, emphasizing that possessing stolen goods creates a presumption that the possessor knew the items were derived from robbery or theft. This ruling underscores the responsibility of those dealing in goods, especially those in the junk shop business, to exercise due diligence in ascertaining the legitimacy of their sources. The decision serves as a reminder that ignorance of the law is not an excuse, and those who profit from stolen items will be held accountable.

    From Stolen Jeepney to Junk Shop: Did the Buyer Know?

    This case revolves around the theft of a passenger jeepney and the subsequent discovery of its dismantled parts in Reymundo Masil’s junk shop. Nimfa Esteban reported the jeepney stolen after her hired driver, Eugene Labramonte, failed to return it. Acting on a tip, police apprehended Wilfredo Santiago while dismantling the jeepney and he confessed to selling parts to Masil’s junk shop. Masil was charged with fencing under Presidential Decree No. (PD) 1612, or the Anti-Fencing Law of 1979. The central legal question is whether Masil knew, or should have known, that the jeepney parts he acquired were derived from theft.

    The elements of fencing, as defined in Section 2 of PD 1612, are critical to understanding the court’s decision. These elements include the commission of robbery or theft, the accused’s lack of involvement as a principal or accomplice in the crime, the accused’s act of buying, receiving, possessing, or dealing in items derived from the crime, the accused’s knowledge or imputed knowledge that the items were derived from the crime, and the accused’s intent to gain. The prosecution bears the burden of proving each of these elements beyond a reasonable doubt.

    Fencing is defined under Section 2 of PD 1612 as “as the act of any person who, with intent to gain for himself or for another, shall buy, receive, possess, keep, acquire, conceal, sell or dispose of, or shall buy and sell, or in any manner deal in any article, item, object or anything of value which he knows, or should be known to him, to have been derived from the proceeds of the crime of robbery or theft.”

    In this case, the court found ample evidence to support Masil’s conviction. The theft of the jeepney and the subsequent dismantling by Wilfredo were established facts. Masil admitted to possessing the dismantled parts in his junk shop. The critical issue was whether Masil knew, or should have known, that the parts were stolen. The court emphasized that the term “should have known” implies a standard of reasonable prudence and intelligence.

    The court considered Masil’s profession as a junk shop owner since 2010. This experience, the court reasoned, should have made him aware of the necessary protocols for buying and selling motor vehicle parts. Section 6 of PD 1612 requires businesses dealing in such items to secure clearance from the police before offering them for sale. Masil’s failure to request proof of ownership from Wilfredo raised serious doubts about the legitimacy of the transaction. This failure to exercise due diligence was a significant factor in the court’s finding of guilt.

    Furthermore, the court highlighted the legal principle that fencing is malum prohibitum, meaning the act is wrong because it is prohibited by law. As such, PD 1612 creates a prima facie presumption of fencing based on the accused’s possession of stolen goods. Masil’s possession of the jeepney parts, without a credible explanation of their origin, was sufficient to trigger this presumption. This shifts the burden to the accused to prove their innocence.

    The court acknowledged the potential for disproportionate penalties between the principal crime of theft and the accessory crime of fencing, especially in light of Republic Act No. 10951, which adjusted the penalties for theft under the Revised Penal Code but not for fencing under PD 1612. However, the court emphasized that the determination of penalties is a policy matter for the legislature. The court also stated that it cannot adjust the penalty based on RA 10951. Despite this observation, the court was constrained to apply the existing law and affirmed Masil’s conviction.

    Regarding the penalty, the Court modified it based on Section 3(a) of PD 1612, which stipulates the penalty of prision mayor if the value of the property is more than P12,000.00 but not exceeding P22,000.00. Applying the Indeterminate Sentence Law, the Court sentenced Masil to an indeterminate penalty of six (6) years, eight (8) months and one (1) day of prision mayor in its minimum period, as minimum, to eight (8) years, eight (8) months and one (1) day of prision mayor in its medium period, as maximum.

    FAQs

    What is fencing under Philippine law? Fencing is the act of buying, receiving, possessing, or dealing in items derived from robbery or theft, with knowledge or imputed knowledge that the items were stolen. It is defined and penalized under Presidential Decree No. 1612.
    What is the significance of “should have known” in fencing cases? The phrase “should have known” means that a reasonable and prudent person, exercising due diligence, would have ascertained that the items were derived from a crime. This places a responsibility on buyers to verify the legitimacy of the goods they acquire.
    What is the effect of possessing stolen goods in a fencing case? Possession of stolen goods creates a prima facie presumption of fencing. This means that the burden shifts to the possessor to prove that they did not know, nor should have known, that the goods were stolen.
    What is malum prohibitum? Malum prohibitum refers to acts that are wrong because they are prohibited by law, rather than being inherently immoral. Fencing is considered malum prohibitum.
    What is the Indeterminate Sentence Law? The Indeterminate Sentence Law requires courts to impose a minimum and maximum term of imprisonment, rather than a fixed sentence. This law aims to individualize punishment and encourage rehabilitation.
    How does Republic Act No. 10951 affect fencing cases? RA 10951 adjusted the penalties for theft under the Revised Penal Code, but not for fencing under PD 1612. This can lead to situations where the penalty for fencing is greater than the penalty for the underlying theft.
    What is the role of due diligence in preventing fencing? Due diligence requires buyers to take reasonable steps to verify the legitimacy of the goods they acquire. This may include asking for proof of ownership, checking the seller’s credentials, and obtaining necessary clearances or permits.
    Can a person be convicted of fencing even if they did not directly participate in the theft? Yes. Fencing is an accessory crime, meaning a person can be convicted of fencing even if they were not involved in the original theft. The key is whether they knowingly or should have known that the goods were stolen.

    This case serves as an important reminder of the responsibilities of those dealing in goods, particularly those in the junk shop business. The duty to exercise due diligence in verifying the source of items is crucial in preventing the proliferation of stolen goods. The Supreme Court’s decision reinforces the principle that ignorance of the law is not an excuse, and those who profit from stolen items will be held accountable.

    For inquiries regarding the application of this ruling to specific circumstances, please contact ASG Law through contact or via email at frontdesk@asglawpartners.com.

    Disclaimer: This analysis is provided for informational purposes only and does not constitute legal advice. For specific legal guidance tailored to your situation, please consult with a qualified attorney.
    Source: REYMUNDO MASIL Y AVIAR v. PEOPLE, G.R. No. 241837, January 05, 2022

  • Understanding the Limits of Presumptions in Fencing Cases: A Guide to Proving Guilt Beyond Reasonable Doubt

    The Importance of Concrete Evidence in Overcoming Presumptions of Guilt

    Dante Lopez y Atanacio v. People of the Philippines, G.R. No. 249196, April 28, 2021

    Imagine being accused of a crime you did not commit, solely because you possessed an item that someone claimed was stolen. This is the reality that Dante Lopez faced when he was charged with the crime of fencing under the Anti-Fencing Law of 1979. His case highlights the critical importance of concrete evidence in criminal prosecutions, especially when relying on legal presumptions.

    In this case, the Supreme Court of the Philippines overturned Lopez’s conviction, emphasizing that a disputable presumption cannot be the sole basis for a conviction beyond reasonable doubt. The central question was whether the presumption of fencing, as provided by law, could stand without sufficient factual foundation to support it.

    Understanding the Legal Framework of Fencing and Presumptions

    Fencing, as defined by Presidential Decree No. 1612, involves dealing with items known or should be known to have been derived from robbery or theft. The essential elements include the commission of a prior robbery or theft, the accused’s possession or disposal of the stolen item, knowledge of its stolen nature, and intent to gain.

    The law also introduces a presumption under Section 5, stating that mere possession of any object subject to robbery or thievery is prima facie evidence of fencing. This means that the possession itself can be considered evidence of the crime unless rebutted by the accused. However, the Supreme Court has clarified that such presumptions must be based on established facts and cannot operate in the absence of concrete evidence.

    A key legal term here is prima facie evidence, which is evidence that, unless rebutted, is sufficient to establish a fact or raise a presumption of fact. In everyday terms, if you’re found with an item that was reported stolen, the law presumes you knew it was stolen unless you can prove otherwise.

    The Journey of Dante Lopez’s Case

    Dante Lopez was accused of possessing a blue Araya mountain bike, which Rafael Mendoza claimed was stolen from him in 2011. Lopez, on the other hand, maintained that he purchased the bike in 1997 from a legitimate store, Bicycle Works.

    The case began in the Regional Trial Court (RTC) of Marikina City, where Lopez was found guilty based on the presumption of fencing. The RTC ruled that Mendoza’s ownership was established, shifting the burden to Lopez to disprove the presumption.

    Lopez appealed to the Court of Appeals (CA), which affirmed the conviction but modified the penalty. The CA also relied on the presumption, stating that Lopez failed to overcome it.

    However, upon reaching the Supreme Court, the justices took a closer look at the evidence. They noted significant discrepancies between the bikes owned by Lopez and Mendoza, including differences in the frame material and serial numbers. The Court emphasized that the prosecution failed to establish that the bike Lopez possessed was the same one stolen from Mendoza.

    Justice Zalameda, writing for the Court, stated, “Without establishing beyond reasonable doubt that the item which has been the subject of theft is the same object in the possession of petitioner, the presumption under Section 5 of PD 1612 would not operate.”

    The Court also highlighted the importance of the notarized affidavits from Bicycle Works, which supported Lopez’s claim of legitimate ownership. These affidavits were crucial in rebutting the presumption of fencing.

    Practical Implications and Key Lessons

    This ruling underscores the necessity for prosecutors to provide concrete evidence linking the accused to the crime, beyond mere presumptions. It serves as a reminder that the burden of proof remains on the prosecution to establish guilt beyond reasonable doubt.

    For individuals and businesses, this case highlights the importance of maintaining documentation for valuable items. If you purchase a high-value item, keep receipts and any documentation that can prove legitimate ownership, as these can be critical in defending against accusations of fencing.

    Key Lessons:

    • Legal presumptions are not absolute and must be supported by factual evidence.
    • Documentation of ownership can be crucial in rebutting presumptions of guilt.
    • The prosecution must prove each element of the crime beyond reasonable doubt.

    Frequently Asked Questions

    What is the crime of fencing?

    Fencing involves dealing with items known or should be known to have been derived from robbery or theft, with the intent to gain.

    What is a legal presumption?

    A legal presumption is an inference that a fact exists based on the proof of other facts, unless rebutted by contrary evidence.

    How can someone defend against a charge of fencing?

    By providing evidence of legitimate ownership or purchase, such as receipts or affidavits from sellers, and by challenging the prosecution’s evidence linking the item to a crime.

    What should I do if I’m accused of possessing stolen property?

    Seek legal counsel immediately. Gather any documentation that can prove your legitimate ownership or purchase of the item in question.

    Can a presumption alone lead to a conviction?

    No, a presumption must be supported by factual evidence. If the accused can rebut the presumption with contrary evidence, it cannot stand as the sole basis for conviction.

    ASG Law specializes in criminal defense and property law. Contact us or email hello@asglawpartners.com to schedule a consultation.

  • Possession is Prima Facie Evidence: Understanding Fencing under Philippine Law

    In Ireneo Cahulogan v. People of the Philippines, the Supreme Court affirmed the conviction of Ireneo Cahulogan for the crime of fencing, as defined and penalized under Presidential Decree No. 1612, also known as the Anti-Fencing Law. The Court reiterated that possession of stolen goods constitutes prima facie evidence of fencing, which the accused failed to rebut. This decision underscores the importance of due diligence in commercial transactions and serves as a reminder that ignorance of the law is not an excuse, especially when circumstances should have prompted a reasonable person to investigate the legitimacy of a transaction.

    When a Discount Turns into a Crime: The Perils of Buying Stolen Goods

    The case began with a simple instruction. Johnson Tan, a businessman, directed his employees, Braulio Lopez and Loreto Lariosa, to deliver 210 cases of Coca-Cola products to Demins Store. Instead, Lopez and Lariosa delivered the goods to Ireneo Cahulogan’s store without authorization. Tan confronted Cahulogan, seeking to retrieve his merchandise, but Cahulogan refused, claiming he had purchased the items from Lariosa for P50,000.00. This refusal, coupled with the suspicious circumstances of the sale, led to Cahulogan’s prosecution and subsequent conviction for fencing.

    Fencing, as defined in Section 2 of PD 1612, is:

    the act of any person who, with intent to gain for himself or for another, shall buy, receive, possess, keep, acquire, conceal, sell or dispose of, or shall buy and sell, or in any other manner deal in any article, item, object or anything of value which he knows, or should be known to him, to have been derived from the proceeds of the crime of robbery or theft.

    The law aims to penalize those who profit from the proceeds of robbery or theft, acting as a deterrent to such crimes. The essential elements of fencing are:
    (a) a crime of robbery or theft has been committed; (b) the accused, who is not a principal or an accomplice in the commission of the crime of robbery or theft, buys, receives, possesses, keeps, acquires, conceals, sells or disposes, or buys and sells, or in any manner deals in any article, item, object or anything of value, which has been derived from the proceeds of the crime of robbery or theft; (c) the accused knew or should have known that the said article, item, object or anything of value has been derived from the proceeds of the crime of robbery or theft; and (d) there is, on the part of one accused, intent to gain for oneself or for another.

    In this case, all the elements were met. Lariosa’s unauthorized sale of the Coca-Cola products constituted theft. Cahulogan, by buying and possessing the items, dealt in goods derived from that crime. Crucially, the Court found that Cahulogan should have known the goods were illegally sourced, given the circumstances of the transaction. Finally, his intent to gain was evident in purchasing the items at a price lower than their actual value.

    The legal framework surrounding fencing also includes a significant provision regarding presumption. Section 5 of PD 1612 states:

    Mere possession of any good, article, item, object, or anything of value which has been the subject of robbery or thievery shall be prima facie evidence of fencing.

    This presumption places the burden on the possessor to prove that they acquired the goods legally and without knowledge of their illicit origin. Cahulogan failed to overcome this presumption, as he presented no evidence to demonstrate his legitimate acquisition of the Coca-Cola products.

    The Court emphasized that the circumstances of the transaction should have alerted Cahulogan to the illegal nature of the goods. Lariosa sold the items without proper documentation and did not request the usual exchange of empty bottles, a common practice in the soft drink industry. These red flags, combined with the discounted price, should have prompted a reasonable person to inquire about the legitimacy of the sale. Instead, Cahulogan proceeded with the transaction, thereby assuming the risk and consequences of dealing in stolen goods.

    Furthermore, the Supreme Court addressed an important point regarding the penalties for fencing in light of Republic Act No. 10951. While PD 1612 was enacted to impose heavier penalties on those profiting from robbery and theft, its penalties are similar to those for theft and are largely dependent on the value of the stolen properties. R.A. No. 10951 adjusted the property value thresholds for theft penalties but did not amend PD 1612, which could lead to situations where a fence receives a harsher penalty than the original thief. Recognizing this incongruence, the Court urged Congress to review and adjust the penalties for fencing to ensure a more equitable application of the law.

    FAQs

    What is the crime of fencing? Fencing is the act of buying, receiving, possessing, or dealing in any item derived from robbery or theft, with knowledge that it came from such illegal activity. It is defined and penalized under Presidential Decree No. 1612.
    What are the elements of fencing? The essential elements are: a crime of robbery or theft occurred; the accused is not the principal or accomplice; the accused buys, receives, possesses, or deals in the stolen item; the accused knew or should have known it was stolen; and intent to gain.
    What is the significance of ‘prima facie evidence’ in fencing cases? Prima facie evidence means that mere possession of stolen goods creates a presumption that the possessor is a fence. The burden then shifts to the possessor to prove they acquired the goods legally and without knowledge of their illegal origin.
    What factors indicate that someone ‘should have known’ goods were stolen? Factors include: the time and place of sale, the seller not being regularly engaged in selling such goods, lack of documentation, unusually low price, and any other circumstances that would raise suspicion in a reasonable person.
    What is the penalty for fencing under PD 1612? The penalty depends on the value of the stolen property. It ranges from prision correccional to reclusion temporal, with potential increases based on higher property values.
    How does Republic Act No. 10951 affect fencing penalties? R.A. No. 10951 adjusted the value of property for theft penalties but did not amend PD 1612. This can result in a fence receiving a harsher penalty than the thief, which the Supreme Court has acknowledged as an incongruence.
    Can someone be convicted of fencing even if the thief is not convicted? Yes, a conviction of the principal in the crime of theft is not necessary for an accused to be found guilty of the crime of Fencing.
    What did the Supreme Court recommend regarding fencing penalties? The Court recommended that Congress review and adjust the penalties for fencing to align them more equitably with the penalties for theft, considering the adjustments made by R.A. No. 10951.

    The Cahulogan case serves as a stark reminder of the legal consequences of dealing in stolen goods. It underscores the importance of exercising due diligence in commercial transactions and being vigilant for red flags that may indicate the illicit origin of merchandise. By affirming Cahulogan’s conviction, the Supreme Court reinforced the policy of deterring fencing and protecting legitimate businesses from the harmful effects of theft and robbery.

    For inquiries regarding the application of this ruling to specific circumstances, please contact ASG Law through contact or via email at frontdesk@asglawpartners.com.

    Disclaimer: This analysis is provided for informational purposes only and does not constitute legal advice. For specific legal guidance tailored to your situation, please consult with a qualified attorney.
    Source: Ireneo Cahulogan v. People, G.R. No. 225695, March 21, 2018

  • Understanding the Anti-Fencing Law in the Philippines: Knowledge and Presumptions

    The Anti-Fencing Law: Possession of Stolen Goods Creates a Legal Presumption

    G.R. No. 111343, August 22, 1996

    Imagine finding a great deal on some construction materials, only to later discover they were stolen. In the Philippines, the Anti-Fencing Law makes it a crime to deal in stolen goods, even if you weren’t the original thief. This case, Ernestino P. Dunlao, Sr. v. Court of Appeals, clarifies how the law works, particularly the legal presumption that arises from possessing stolen items.

    The case revolved around Ernestino Dunlao, Sr., a scrap metal dealer, who was found in possession of farrowing crates and G.I. pipes stolen from Lourdes Farms. The key legal question was whether Dunlao could overcome the presumption that he was a “fence” – someone who knowingly deals in stolen property.

    Legal Context: Defining Fencing and Its Presumptions

    Presidential Decree No. 1612, also known as the Anti-Fencing Law, aims to combat the buying, selling, or dealing in stolen goods. The law defines “fencing” as:

    “the act of any person who, with intent to gain for himself or for another, shall buy, receive, possess, keep, acquire, conceal, sell or dispose of, or shall buy and sell, or in any other manner deal in any article, item, object or anything of value which he knows, or should be known to him, to have been derived from the proceeds of the crime of robbery or theft.”

    A crucial aspect of the law is the presumption it creates. Section 5 states:

    “Mere possession of any good, article, item, object, or anything of value which has been the subject of robbery or thievery shall be prima facie evidence of fencing.”

    This means that if you’re found with stolen goods, the burden shifts to you to prove you didn’t know they were stolen and didn’t intend to profit from them. This presumption is a powerful tool for law enforcement in prosecuting those involved in the illegal trade of stolen items. For example, if a homeowner discovers their television set at a pawnshop, the pawnshop owner has to prove they didn’t know it was stolen.

    It is important to note the distinction between mala in se and mala prohibita. Crimes mala in se are inherently wrong, like murder or theft, and require proof of criminal intent. Crimes mala prohibita, like fencing, are wrong because a law prohibits them. In these cases, the intent of the offender is immaterial; the act itself is the crime.

    Case Breakdown: Dunlao’s Defense and the Court’s Reasoning

    Here’s how the case unfolded:

    • Lourdes Farms employees, along with police officers, went to Dunlao’s scrap metal yard after receiving information that stolen items were there.
    • They found farrowing crates and G.I. pipes belonging to Lourdes Farms on Dunlao’s property.
    • Dunlao claimed that men in a jeep had unloaded the pipes at his yard, asking to leave them temporarily, but never returned. He said he was merely holding them for safekeeping.
    • The trial court convicted Dunlao, and the Court of Appeals affirmed the conviction.

    The Supreme Court upheld the conviction, emphasizing that Dunlao failed to overcome the presumption of fencing. The Court highlighted the following points:

    1. Intent to gain is not required for mala prohibita crimes: The Court stated, “When an act is illegal, the intent of the offender is immaterial.”
    2. Mere possession creates a presumption: “The law does not require proof of purchase of the stolen articles by petitioner, as mere possession thereof is enough to give rise to a presumption of fencing.”
    3. Dunlao’s explanation was unconvincing: The Court found it suspicious that Dunlao displayed the items in his shop and didn’t verify the identity of the people who left them.

    The Court quoted the trial court’s observation:

    “And when the accused took it upon himself to protect and transfer inside his compound items unloaded by total strangers without any agreement as to how the items would be sold or disposed of nor how soon agreement would be compensated, a rather dubious aura of illegitimacy envelopes and taints the entire transaction.”

    Consider this hypothetical: A person buys a used laptop at a significantly discounted price from an unknown individual. If that laptop is later identified as stolen, the buyer could face charges under the Anti-Fencing Law, even if they claim they didn’t know it was stolen. The burden would be on them to prove their innocence.

    Practical Implications: Protecting Yourself from Fencing Charges

    This case underscores the importance of due diligence when acquiring goods, especially if the price seems too good to be true. Here are some practical tips:

    • Verify the source: Ask for proof of ownership or a receipt from the seller.
    • Be wary of deals that seem too good to be true: A price significantly below market value should raise red flags.
    • Document the transaction: Keep records of the sale, including the seller’s information and a description of the goods.
    • Report suspicious offers: If you suspect someone is trying to sell stolen goods, contact the police.

    Key Lessons:

    • Possession of stolen goods creates a legal presumption of fencing.
    • It is crucial to exercise due diligence when acquiring property to avoid potential legal issues.
    • Ignorance is not always a defense; you must take reasonable steps to ensure the goods you acquire are not stolen.

    Frequently Asked Questions

    Q: What is the penalty for fencing in the Philippines?

    A: The penalty depends on the value of the stolen goods. It can range from prision correccional (6 months and 1 day to 6 years) to prision mayor (6 years and 1 day to 12 years), along with fines.

    Q: What if I unknowingly bought stolen goods? Am I still liable?

    A: You could still face charges. The burden is on you to prove that you had no knowledge that the goods were stolen and that you acted in good faith.

    Q: How can I prove I didn’t know the goods were stolen?

    A: Evidence of due diligence, such as verifying the seller’s identity, obtaining receipts, and checking the market value of the goods, can help demonstrate your lack of knowledge.

    Q: What should I do if I suspect I’ve purchased stolen goods?

    A: Contact the police immediately and cooperate with their investigation. This can help mitigate potential charges.

    Q: Does the Anti-Fencing Law apply to online transactions?

    A: Yes, the law applies regardless of whether the transaction occurs in person or online.

    Q: What is the difference between theft and fencing?

    A: Theft is the act of stealing property. Fencing is the act of dealing in stolen property, knowing it was stolen.

    Q: Can a business be held liable for fencing if an employee unknowingly purchases stolen goods?

    A: Yes, the business can be held liable if it is proven that the employee was acting within the scope of their employment. Due diligence is extremely important.

    ASG Law specializes in criminal defense and commercial law. Contact us or email hello@asglawpartners.com to schedule a consultation.

  • Fencing in the Philippines: Knowledge and Presumptions Under the Anti-Fencing Law

    The Importance of Knowledge in Fencing Cases: Rebutting the Presumption of Guilt

    D.M. CONSUNJI, INC., PETITIONER, VS. RAMON S. ESGUERRA, ET AL., G.R. No. 118590, July 30, 1996

    Imagine you’re a business owner who purchases materials from a supplier. Unbeknownst to you, those materials were stolen. Can you be held liable for ‘fencing,’ even if you had no idea they were illegally obtained? This Supreme Court case clarifies the crucial element of knowledge in fencing cases and how the presumption of guilt can be overcome with evidence of good faith.

    INTRODUCTION

    This case revolves around D.M. Consunji, Inc., which experienced systematic pilferage of company properties. These stolen materials were then sold to hardware stores owned by Eduardo Ching and the Spouses Say. The central legal question is whether Ching and the Spouses Say could be prosecuted for violating the Anti-Fencing Law (Presidential Decree 1612), despite claiming they were unaware the goods were stolen. The Supreme Court ultimately addressed whether the dismissal of the complaint against the private respondents was justified.

    LEGAL CONTEXT: UNDERSTANDING THE ANTI-FENCING LAW

    The Anti-Fencing Law (Presidential Decree No. 1612) aims to combat the trafficking of stolen goods. It defines ‘fencing’ as the act of any person who, with intent to gain, buys, receives, possesses, keeps, acquires, conceals, sells, or disposes of any item which he knows, or should have known, to have been derived from robbery or theft.

    A key provision of the law, Section 5, states that “[m]ere possession of any good, article, item, object, or anything of value which has been the subject of robbery or thievery shall be prima facie evidence of fencing.” This means that simply possessing stolen goods creates a presumption that the possessor is a fence, shifting the burden of proof to the possessor to prove their innocence.

    However, the prosecution must still prove beyond reasonable doubt that the accused knew or should have known that the goods were stolen. This element of knowledge is crucial. The Supreme Court in Dizon-Pamintuan vs. People outlined the elements of fencing:

    • A crime of robbery or theft has been committed.
    • The accused, not a principal or accomplice in the crime, buys, receives, possesses, etc., the stolen item.
    • The accused knows or should have known the item was derived from robbery or theft.
    • The accused has intent to gain.

    A person is deemed to know a fact if they are aware of its existence or have it within their mind’s grasp. The phrase “should know” implies a reasonable person would ascertain the fact in performing their duty. This case highlights that the presumption of fencing can be rebutted with evidence showing a lack of knowledge or reasonable suspicion that the goods were stolen.

    CASE BREAKDOWN: THE FACTS AND THE COURT’S REASONING

    Here’s a chronological breakdown of the events:

    1. D.M. Consunji, Inc. discovers internal pilferage of company properties.
    2. The stolen materials are sold to MC Industrial Sales (owned by Ching) and Seato Trading Company, Inc. (owned by the Spouses Say).
    3. The NBI conducts searches of the premises of Ching and the Spouses Say, seizing phenolic plywood.
    4. The NBI files complaints against Ching and the Spouses Say for violation of the Anti-Fencing Law.
    5. The Investigating Prosecutor recommends dismissal of the case, finding no probable cause to believe that Ching and the Spouses Say knew the plywood was stolen.
    6. The Undersecretary of Justice upholds the dismissal.
    7. D.M. Consunji, Inc. files a petition for certiorari and mandamus with the Supreme Court.

    The Supreme Court denied the petition, finding no grave abuse of discretion by the public respondents. The Court emphasized that the private respondents presented sales receipts covering their purchases, disputing the prima facie presumption of fencing. The court cited the Investigating Prosecutor’s findings:

    “When SEATO TRADING bought the said marine plywoods from EDUARDO CHING, there is no doubt that the Spouses SAY were buying legitimate goods. They never had any suspicious (sic), even the slightest suspicion, that those marine plywoods were allegedly the subject of thievery…”

    Additionally, the Court noted that Ching claimed to have purchased the plywood from agents of Paramount Industrial, a known hardware store, and that his purchases were covered by receipts. The Spouses Say also claimed to have bought the plywood from MC Industrial Sales, a registered business establishment licensed to sell construction materials, with receipts to prove the transaction. The Supreme Court concluded that these receipts provided a reasonable basis to believe the transactions were legitimate, thus negating the element of knowledge required for a fencing conviction.

    “Absent other evidence, the presumption of innocence remains. Thus, grave abuse of discretion cannot be successfully imputed upon public respondents.”

    PRACTICAL IMPLICATIONS: WHAT THIS MEANS FOR BUSINESSES

    This case underscores the importance of due diligence in business transactions. While mere possession of stolen goods creates a presumption of fencing, this presumption can be overcome by presenting evidence of good faith and lack of knowledge that the goods were stolen. For business owners, this means keeping accurate records of purchases, verifying the legitimacy of suppliers, and documenting all transactions.

    Key Lessons:

    • Document Everything: Always obtain and keep receipts for all purchases.
    • Know Your Suppliers: Verify that your suppliers are legitimate and licensed businesses.
    • Be Aware: If something seems too good to be true, it probably is. Investigate any suspicious circumstances.

    For prosecutors, this case emphasizes the need to prove the element of knowledge beyond a reasonable doubt in fencing cases. Mere possession is not enough; there must be evidence that the accused knew or should have known that the goods were stolen.

    FREQUENTLY ASKED QUESTIONS

    Q: What is fencing under Philippine law?

    A: Fencing is the act of buying, receiving, possessing, or dealing in any item that the person knows or should have known was derived from robbery or theft, with the intent to gain.

    Q: What is the penalty for fencing?

    A: The penalty for fencing is dependent on the value of the property involved and is generally equivalent to the penalty prescribed for robbery or theft of the same property.

    Q: What does “prima facie evidence of fencing” mean?

    A: It means that the mere possession of stolen goods creates a presumption that the possessor is a fence. However, this presumption can be rebutted with evidence to the contrary.

    Q: What kind of evidence can rebut the presumption of fencing?

    A: Evidence such as sales receipts, proof of legitimate business operations, and testimony showing a lack of knowledge or reasonable suspicion that the goods were stolen can rebut the presumption.

    Q: What is the role of the prosecutor in a fencing case?

    A: The prosecutor must establish probable cause and prove beyond a reasonable doubt that the accused knew or should have known that the goods were stolen.

    Q: Can a person be convicted of fencing even if they didn’t directly steal the goods?

    A: Yes, fencing applies to individuals who buy, receive, or possess stolen goods, even if they were not involved in the actual theft.

    Q: What is the difference between theft and fencing?

    A: Theft is the act of stealing property, while fencing is the act of dealing in stolen property. They are distinct but related offenses.

    Q: Is it enough to have receipts to prove that I am not a fence?

    A: While receipts are strong evidence, the court will consider the totality of evidence to determine your guilt or innocence. Keeping accurate records and verifying suppliers are important.

    ASG Law specializes in criminal defense and commercial litigation. Contact us or email hello@asglawpartners.com to schedule a consultation.

  • Moral Turpitude and Fencing: Understanding Disqualification in Philippine Elections

    Fencing as a Crime Involving Moral Turpitude Can Disqualify a Candidate

    G.R. No. 121592, July 05, 1996

    Imagine a local election where a candidate, seemingly popular, is suddenly disqualified. The reason? A past conviction for fencing. This scenario highlights the critical intersection of criminal law, election law, and moral standards in the Philippines. The case of Dela Torre v. COMELEC delves into whether the crime of fencing involves moral turpitude, a factor that can disqualify individuals from holding public office under the Local Government Code. The Supreme Court’s resolution clarifies this issue, providing guidance for future election disputes and underscoring the importance of ethical conduct for public servants.

    Understanding Moral Turpitude and Its Impact on Candidacy

    The Local Government Code of 1991 (Republic Act No. 7160) sets forth specific disqualifications for individuals seeking elective local positions. Section 40(a) is particularly relevant, stating that those sentenced by final judgment for an offense involving moral turpitude or for an offense punishable by one (1) year or more of imprisonment within two (2) years after serving sentence are disqualified from running for any elective local position.

    The key phrase here is “moral turpitude.” The Supreme Court, in numerous cases, has defined it using Black’s Law Dictionary as “an act of baseness, vileness, or depravity in the private duties which a man owes his fellowmen, or to society in general, contrary to the accepted and customary rule of right and duty between man and woman or conduct contrary to justice, honesty, modesty, or good morals.”

    However, not all crimes automatically involve moral turpitude. Generally, crimes mala in se (inherently wrong) involve moral turpitude, while crimes mala prohibita (wrong because prohibited by law) do not. But this is not a definitive rule. As the Supreme Court noted in International Rice Research Institute v. NLRC, whether a crime involves moral turpitude ultimately depends on the specific facts and circumstances surrounding the violation.

    In simpler terms, consider theft (mala in se) versus violating a traffic law (mala prohibita). Theft inherently involves dishonesty and a disregard for another’s property rights, suggesting moral turpitude. A traffic violation, while illegal, doesn’t necessarily reflect a similar level of moral depravity.

    The Dela Torre Case: Fencing Under Scrutiny

    Rolando P. Dela Torre, a candidate for Mayor of Cavinti, Laguna, faced disqualification due to a prior conviction for violating Presidential Decree No. 1612, also known as the Anti-Fencing Law. The Commission on Elections (COMELEC) disqualified him, arguing that fencing involves moral turpitude. Dela Torre appealed, claiming that the probation granted to him suspended the applicability of Section 40(a) of the Local Government Code.

    Here’s a breakdown of the case’s journey:

    • 1. Dela Torre was convicted by the Municipal Trial Court for violation of P.D. 1612 (Anti-Fencing Law).
    • 2. He appealed to the Regional Trial Court, which affirmed his conviction. The conviction became final on January 18, 1991.
    • 3. Dela Torre was granted probation on December 21, 1994.
    • 4. COMELEC disqualified him from running for Mayor in the May 8, 1995 elections, citing Section 40(a) of the Local Government Code.
    • 5. Dela Torre filed a motion for reconsideration, which was denied.

    The Supreme Court had to determine two key issues: (1) whether fencing involves moral turpitude, and (2) whether the grant of probation affected the applicability of Section 40(a).

    To resolve the first issue, the Court analyzed the elements of fencing, which are:

    1. A crime of robbery or theft has been committed.
    2. The accused, not a principal or accomplice in the robbery or theft, buys, receives, possesses, etc., property derived from the said crime.
    3. The accused knows or should have known that the property was derived from the robbery or theft.
    4. The accused intends to gain for himself or another.

    The Court emphasized the third element, stating, “Actual knowledge by the ‘fence’ of the fact that property received is stolen displays the same degree of malicious deprivation of one’s rightful property as that which animated the robbery or theft which, by their very nature, are crimes of moral turpitude.”

    In its decision, the Supreme Court quoted:

    “When knowledge of the existence of a particular fact is an element of the offense, such knowledge is established if a person is aware of the high probability of its existence unless he actually believes that it does not exist. On the other hand, the words ‘should know’ denote the fact that a person of reasonable prudence and intelligence would ascertain the fact in the performance of his duty to another or would govern his conduct upon assumption that such fact exists.”

    Regarding the second issue, the Court clarified that probation only suspends the execution of the sentence. Dela Torre’s conviction for fencing, a crime involving moral turpitude, remained valid and unaffected by the probation. The Court also cited previous cases confirming that a judgment of conviction ipso facto attains finality when the accused applies for probation.

    The Supreme Court ultimately dismissed Dela Torre’s petition and affirmed the COMELEC’s resolutions.

    Practical Implications of the Ruling

    This case reinforces the principle that certain crimes, even if not inherently violent, can disqualify individuals from holding public office if they involve moral turpitude. It highlights the importance of due diligence and ethical conduct in all transactions, particularly when dealing with property. Furthermore, it clarifies that probation does not erase a conviction for purposes of disqualification under the Local Government Code.

    Imagine a business owner who knowingly buys goods at significantly below-market prices, suspecting they might be stolen. This ruling suggests that such behavior, if proven, could not only lead to criminal charges for fencing but also potentially disqualify the business owner from holding any public office in the future.

    Key Lessons

    • A conviction for fencing, a crime involving moral turpitude, can disqualify an individual from running for public office.
    • Probation only suspends the execution of a sentence; it does not erase the conviction.
    • Individuals must exercise due diligence to ensure that the property they acquire is not derived from illegal activities.

    Frequently Asked Questions

    1. What is moral turpitude?

    Moral turpitude is an act of baseness, vileness, or depravity that violates accepted moral standards.

    2. How does moral turpitude affect someone’s eligibility for public office?

    Under the Local Government Code, a final conviction for a crime involving moral turpitude can disqualify an individual from running for an elective local position.

    3. Does probation erase a criminal conviction?

    No, probation only suspends the execution of the sentence. The conviction remains valid.

    4. What is fencing?

    Fencing is the act of buying, receiving, possessing, or dealing in any article or item of value that one knows, or should know, to have been derived from robbery or theft.

    5. What should I do if I suspect that goods being offered to me are stolen?

    Exercise extreme caution. Verify the seller’s credentials, the origin of the goods, and the legitimacy of the transaction. If in doubt, refrain from the purchase and report your suspicions to the authorities.

    6. Can a pardon remove a disqualification based on moral turpitude?

    While a pardon can restore certain rights, its effect on disqualifications for public office may depend on the specific circumstances and the terms of the pardon itself.

    7. Is ignorance of the law an excuse for fencing?

    No, the law presumes that individuals are aware of the laws. The element of “should have known” in the definition of fencing implies a duty to inquire and verify the source of goods.

    8. What are the penalties for fencing in the Philippines?

    The penalties for fencing vary depending on the value of the stolen property and are outlined in P.D. 1612.

    ASG Law specializes in election law and criminal defense. Contact us or email hello@asglawpartners.com to schedule a consultation.