CA orders dismissal of estafa charges versus gaming mogul Kazuo Okada

The Court of Appeals (CA) has ordered the dismissal of the estafa charges filed against Japanese gaming tycoon Kazuo Okada and his associate Takahiro Usui, respectively the former chief executive officer (CEO) and chief operating officer (COO) of Tiger Resort Leisure and Entertainment, Inc. (TRLEI).

In a 24-page decision, the CA granted Okada and Usui’s petition seeking the reversal of the May 6, 2019 and July 4, 2019 orders of the Parañaque City Regional Trial Court (RTC) Branch 257 Judge Rolando How to proceed with their trial and order their arrest.

Besides dismissing Criminal Case Nos. 2018-3100 to 3102, the CA ordered the recall and quashal of the warrant of arrest against Okada and Usui.

Prosecutors accused Okada of conspiring with Usui to receive $3.16 million in salaries and consultancy fees without any authority or approval by the TRLEI board. They also refused to return the money upon demand.

The CA held that the RTC committed grave abuse of discretion when it proceeded with the estafa charges and issued the arrest warrants even though “the records suggest that there is no probable cause to indict” Okada and Usui.

It noted Judge How’s failure to issue an order “explaining his finding of probable cause” in the case initiated by TRLEI, from which they were ousted in 2017.

The CA ruled that the allegedly misappropriated amounts represented Okada’s compensation on account of services he rendered to the corporation and that Usui was empowered to fix the amount.

“To recall, the subject amount in this case was not entrusted to petitioner for his safekeeping or administration. Rather, it was paid to him by the corporation in consideration of the services that he rendered as a consultant of TRLEI and as its former CEO. As such, petitioner became the owner of the subject amount,” read the decision.

The CA added that Okada could not have misappropriated the amount he received from a company that he owned.

“At most private respondent (TRLEI) has the opportunity to seek recourse in a civil case if it truly believes that the disbursements were unauthorized. Unfortunately, it cannot insist on pursuing the instant criminal case against petitioner and Usui in light of the absence of probable cause to indict them for the crime,” it held.

The decision was penned by Associate Justice Alfredo Ampuan and concurred in by Associate Justices Pedro Corales and Bonifacio Pascua.