Practice question
Six organizers form and control a corporation to solicit investments from the general public, use proved fraudulent representations constituting estafa, and misappropriate the funds through the jointly formed unlawful scheme. They argue that incorporation alone immunizes them and that only a rural bank can ever fall under PD1689. Which is best?
- All incorporated schemes are immune
- Only rural banks appear in the decree
- A corporate certificate conclusively negates deceit
- The decree also addresses covered public solicitation by corporations or associations; the stated scheme requires analysis under all statutory elements
- Public solicitation makes every failed investment automatically criminal
Legal references
- PD1689 Section1; Galvez, February20 2013: https://lawphil.net/statutes/presdecs/pd1980/pd_1689_1980.html
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