G.R. No. L-546 : October 10, 1902
THE UNITED STATES, complainant-appellee, vs. MANUEL SCARELLA, defendant-appellant.

FACTS:
The defendant, Manuel Scarella, was a ranger employed by the Forestry Bureau in Batangas. His duties were limited to measuring timber cut on public lands and issuing certificates; he had no authority to collect the corresponding government dues. He was charged with the crime of estafa for allegedly receiving three sums of money5 pesos from Potenciano Ebora, 10 pesos from Marcelo Cueto, and 38 pesos from Isidoro Castilloas payment for timber dues, with the obligation to remit them to the government, but instead appropriating them for his own use to the prejudice of the United States. The trial court convicted him on all three counts under Article 535, No. 5, of the Penal Code.

ISSUE:
Whether the defendant is guilty of estafa for the misappropriation of the sums received from Potenciano Ebora, Marcelo Cueto, and Isidoro Castillo.

RULING:
The Supreme Court partially affirmed and partially reversed the trial court’s decision.
1. Regarding the sums from Ebora (5 pesos) and Cueto (10 pesos): The Court found the defendant guilty of two separate acts of estafa. The defendant admitted receiving these sums as government dues. Despite having no authority to collect, his subsequent failure to remit the amounts within a reasonable time warranted the inference of fraudulent conversion for his own use. The crime of estafa under Article 535, No. 5 was thus committed. However, the injured parties were Ebora and Cueto, not the United States government, as the payment to the unauthorized agent did not extinguish the original debt to the government. The aggravating circumstance of taking advantage of official position (Article 10, No. 11) was properly applied.
2. Regarding the sum from Castillo (38 pesos): The Court acquitted the defendant. The evidence indicated that this money was given to the defendant to hold as a fund for Castillo’s future timber dues, to be paid upon Castillo’s direction. Since no such direction was given, the defendant’s mere retention of the funds, without proof of fraudulent appropriation prior to his arrest, did not constitute estafa. The evidence of an alleged confession was deemed insufficient to establish guilt beyond a reasonable doubt.

DISPOSITIVE:
The judgment was reversed. The defendant was found guilty of two counts of estafa for the sums from Ebora and Cueto. For each count, he was sentenced to three months and one day of arresto mayor, to be served consecutively, with perpetual special disqualification, and ordered to indemnify Potenciano Ebora (5 pesos) and Marcelo Cueto (10 pesos). He was acquitted of the charge concerning the 38 pesos from Isidoro Castillo.