G.R. No. L-10891; August 18, 1916
Case Title: United States, plaintiff-appellee, vs. Eugenio Kilayko, defendant-appellant.

FACTS:
On or about January 14, 1915, in Iloilo, the defendant-appellant Eugenio Kilayko agreed to purchase a parcel of land with a house from Leonora Lozano and Dolores Genoves for P1,400. The vendors executed a deed of sale (Exhibit A) reflecting a false purchase price of P2,500, which Kilayko inserted for his own advantage. It was agreed that payment of P1,400 would be made in cash upon delivery of the deed. Kilayko, however, fraudulently obtained possession of the signed deed by representing that he needed to take it to a notary public, promising to pay the following morning. Instead of paying, on January 15, he delivered a document stating the vendors could collect rentals from the property until he paid the P1,400. Subsequently, on January 17 or 18, Kilayko sold the same property to C.N. Hodges for P3,000. The vendors denied having agreed to the rental arrangement or having acknowledged the deed before the notary public, whose credibility the trial court doubted based on his admission of having taken acknowledgments in the absence of parties in other cases.

ISSUE:
Whether the evidence proves beyond a reasonable doubt that the defendant-appellant is guilty of the crime of estafa (swindling).

RULING:
Yes. The Supreme Court affirmed the judgment of the lower court, finding the defendant guilty of estafa. The Court upheld the trial court’s assessment of credibility, believing the positive testimony of the vendors that the sale was conditioned on immediate cash payment and that Kilayko obtained the deed through fraudulent representations without intending to pay. The subsequent sale of the property to a third party for a higher price confirmed his intent to defraud. The sentence of two years of presidio correccional, indemnification of P1,400 to the vendors (with subsidiary imprisonment in case of insolvency), and payment of costs was confirmed. The Court also recommended that the Attorney-General investigate the notary public, Jose Evangelista, for potential abuse of authority.