G.R. No. 10541 ; September 11, 1915
THE UNITED STATES, plaintiff-appellee, vs. JUAN HERMOSILLA, defendant-appellant.

FACTS:
The defendant, Juan Hermosilla, possessed a Brazilian bank bill with a face value of 500 reis (equivalent to 54 Philippine centavos). On October 3, 1913, in Danao, Cebu, he induced Mamerto Caputulan to take the bill to the store of Francisco Sepulveda and purchase goods worth P50.12. Caputulan, following Hermosilla’s instructions, represented the bill to Sepulveda as Philippine paper money worth P500. Believing this, Sepulveda accepted the bill and gave Caputulan the purchased goods plus P449.88 in change. Caputulan then delivered the change to Hermosilla, who was waiting outside. The goods were taken to Caputulan’s house by a carrier. Prior to this incident, Hermosilla had unsuccessfully attempted to pledge the same bill as security for a loan of P150 with two other individuals, representing it as a genuine P500 note. Hermosilla denied the charges, claiming he was in Cebu City at the time.

ISSUE:
Whether the defendant, Juan Hermosilla, is guilty of the crime of estafa (swindling).

RULING:
Yes, the defendant is guilty of estafa. The Court found that Hermosilla, as the principal by inducement, conceived and directed the fraudulent scheme. He provided the worthless Brazilian bank note and instructed Caputulan to misrepresent its value as P500 Philippine currency to Sepulveda. This deceit caused Sepulveda to part with goods and money, suffering a total loss of P500 (P50.12 in goods + P449.88 in change). The crime falls under Article 534, paragraph 2, and Article 535, paragraph 1 of the Penal Code. The defense of alibi was rejected, and the testimonies of witnesses, including Caputulan (who was separately convicted for his participation), were deemed credible. No aggravating or mitigating circumstances were considered, as premeditation is inherent in crimes against property like estafa. The Supreme Court modified the penalty imposed by the trial court. The defendant was sentenced to six months of arresto mayor, with accessory penalties, and ordered to indemnify the offended party the total sum of P500 (or restore the goods). The Brazilian bank bill was ordered confiscated and its value applied to the defendant’s pecuniary liability.