$1.3 million in stolen funds returned to Philippines

MANILA, Philippines – A check for $1.3 million was presented to the Republic of the Philippines by U.S. Ambassador Philip Goldberg June 3, marking the conclusion of a joint investigation of a former Philippine official by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), U.S. Attorney's Office for the Southern District of New York and the Office of the Ombudsman of the Philippines.

The investigation of Major General Carlos Flores Garcia, former comptroller of the Philippine Armed Forces, began in 2004. General Garcia was suspected of using his official position to illegally accept commissions, bribes, kickbacks, gifts and other benefits in connection with government contracts and projects he oversaw as comptroller. 

“The level of collaboration speaks volumes about the relationship between the local authorities and HSI agents,” said Peter T. Edge, executive associate director for HSI. “Furthermore, this case sends a message to corrupt officials around the world that the United States will not shelter them from justice.”

Philippine and HSI investigators determined that General Garcia and his family laundered a substantial portion of their criminal proceeds through the United States. In 2004 alone, members of General Garcia's family transferred more than $2 million from the Philippines to the United States. 

HSI San Francisco initiated the investigation against General Garcia which led to the joint investigation by HSI Manila and the Philippine Ombudsman’s Office. Subsequently, HSI New York identified and began civil forfeiture proceedings with the U.S. Attorney's Office for the Southern District of New York. Default judgements of forfeitures included the funds in two bank accounts at Citibank in New York totaling $245,520.94 and a condominium at Trump Tower in New York.    The subsequent sale of the Trump Tower condominium netted nearly $1.14 million, bringing the total returned to $1.38 million.

During the ceremony, Ambassador Goldberg remarked, “Battling public corruption is a challenge that all countries face, including the United States. Meeting that challenge is vitally important to ensure public confidence in the honesty and integrity of public servants. Since retiring from the Supreme Court to serve as the ombudsman, Justice Morales has been tireless in the investigation and prosecution of public corruption cases. The United States is very pleased to be able to assist Ombudsman Morales and her office whenever possible.”