Pampanga Court Dismisses ₱6.6-Billion Estafa Case Against Delfin Lee and Co-Accused
A Regional Trial Court (RTC) in Pampanga has officially dismissed the massive ₱6.6-billion estafa case filed against prominent businessman Delfin Lee, his son, and three other individuals. The court cited insufficiency of evidence as the primary reason for this significant legal decision, which brings a major chapter in this long-running financial controversy to a close.
Court's Detailed Ruling and Legal Grounds
In a comprehensive 100-page resolution dated February 25, 2026, Acting Presiding Judge Joel C. Bantasan of the RTC Third Judicial Region, Branch 42, delivered a clear verdict. The court ruled that "the prosecution failed to establish the elements of the crime of estafa under Article 315 (2)(a) of the Revised Penal Code, or any lesser offense necessarily included therein, which warrants the dismissal of this criminal action on demurrer."
The court granted three separate demurrers to evidence that had been filed on July 17, 19, and 21, 2025. A demurrer to evidence is a legal motion filed by an accused party seeking dismissal of a case on the grounds that the prosecution's evidence is insufficient. When such a demurrer is granted, it is legally equivalent to an acquittal.
The dispositive portion of the resolution explicitly stated: "Accordingly, the case against all the accused Delfin Sy Lee, Dexter Lim Lee, Christina Iliarte Sagun, Cristina Dela Cruz Salagan, and Atty. Alex Madrina Alvarez is dismissed for insufficiency of evidence."
Background of the Globe Asiatique Controversy
The estafa case originated from serious allegations that Globe Asiatique, a real estate development company, had utilized "ghost borrowers" to secure ₱6.6-billion in housing loans from the Home Development Mutual Fund (Pag-IBIG Fund) between 2008 and 2011. These allegations suggested fraudulent practices in obtaining substantial public funds intended for housing development.
In its detailed ruling, the RTC determined that there was no sufficient evidence to establish that the accused had solicited public funds through illegal means or had fraudulently induced Pag-IBIG to release the enormous ₱6.6 billion. The court further noted that alleged contractual breaches did not automatically constitute criminal fraud, drawing a clear distinction between civil contractual disputes and criminal liability.
Civil Proceedings Remain Separate
The resolution carefully clarified that this dismissal "only settles this criminal action without prejudice to any civil action between the parties arising from other independent causes of action or sources of obligation." The court specifically referenced Civil Case No. 10-1120, entitled "Globe Asiatique Realty Holdings Corporation and Delfin Lee v. Home Development Mutual Fund or Pag-ibig, its Board of Trustees and Emma Linda Faria," which was previously subject to a summary judgment before the Makati City RTC.
The court emphasized that "the outcome of said case shall then govern their respective civil claims arising from their contracts, which are separate and independent sources of obligation." This distinction ensures that while the criminal case has been resolved, civil matters related to contractual obligations remain open for adjudication through appropriate legal channels.
Long Legal History and Recent Developments
This case has a complex legal history spanning more than a decade. In 2012, the Supreme Court of the Philippines downgraded the charge against Delfin Lee from syndicated estafa to simple estafa and remanded the case to the trial court for further proceedings. Lee was subsequently allowed to post bail in 2018, marking another significant development in this protracted legal battle.
Following the recent dismissal, Delfin Lee expressed relief, stating that after more than a decade, this latest verdict finally settled the last remaining legal issue and put an end to what he called the "fabled and outright lie" about the so-called P6-billion housing controversy that had been promoted by former housing officials.
As part of the dismissal order, the RTC also directed the release of cash bonds posted by the accused in connection with their provisional liberty. These bonds amounted to ₱120,000 and ₱100,000, to be released upon presentation of the official receipts, concluding the financial aspects of their provisional release arrangements.
