G.R. No. 39177; February 21, 1934
THE PEOPLE OF THE PHILIPPINE ISLANDS, plaintiff-appellee, vs. TAN DIONG (alias TANGO), PASTORA PADLA, and EUSTAQUIO BARANDA, defendants-appellants.

FACTS

Prior to June 1931, appellant Tan Diong, a merchant, incurred substantial debts to creditors, including a judgment in favor of Lim Tian Ting & Co. for over P5,000. An execution on this judgment yielded only a small amount. Investigation revealed that Tan Diong and his wife, Pastora Padla, had transferred all their real properties to their co-defendant and relative, Eustaquio Baranda. The prosecution alleged these conveyances were made to place the properties beyond the reach of Tan Diong’s creditors, with a fictitious consideration.

ISSUE

Whether the appellants are guilty of the offense of making way with property in fraud of creditors under Article 523 of the old Penal Code (Article 314, Revised Penal Code).

RULING

The Supreme Court modified the judgment of the Court of First Instance.
1. As to Tan Diong: The evidence amply proved his guilt. The conveyances were fraudulent, intended to defraud his creditors. His conviction is affirmed, but his sentence is modified to an indeterminate penalty.
2. As to Pastora Padla and Eustaquio Baranda: Their convictions are reversed. For Padla, the decision does not specify grounds for acquittal in the summary. For Baranda, his mere acceptance of the property and assertion of ownership after the fraudulent conveyances were executed did not sufficiently prove he conspired in the fraud at the time of the acts. His guilt as a co-conspirator was not proved beyond reasonable doubt. The reversal is without prejudice to creditors filing a civil action against Baranda regarding the properties.

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