Swindling (Estafa) Under Article 316 of the Revised Penal Code (RPC) — A Comprehensive Philippine Legal Guide
Disclaimer: This article is for information only and is not a substitute for individualized legal advice. Always consult a Philippine lawyer on concrete cases.
1. Statutory Text and Location in the RPC
Article 316 falls under Title X (Crimes Against Property), Chapter III (Swindling and Other Deceits). It punishes six discrete acts collectively labelled “Other forms of swindling.” The provision reads in full: ([PDF] S. LEE, respondent. (HDMF),petitioner, v. ATTY. ALEX M. ALVAREZ ...)
Penalty: arresto mayor (1 month + 1 day – 6 months) in its minimum and medium periods and a fine of not less than the damage caused and not more than three times such damage.
• Republic Act No. 10951 (2017) did not amend Art. 316, so these ranges remain intact. (Republic Act No. 10951)
2. Policy Rationale & History
While Article 315 covers the classic modes of estafa, Article 316 was inserted to fill legislative gaps by criminalising specific fraudulent property dealings that did not squarely fit Art. 315 or the Civil Code’s civil remedies. Spanish Code antecedents already punished these modes, and Philippine courts have applied them since U.S. v. Drilon (1917) on double sales. (Other forms of swindling, A316 Revised Penal Code - Legal Resource PH)
3. Structure — The Six Paragraphs
| ¶ | Gist of Prohibited Act | Typical Victim | Core Deceit |
|---|---|---|---|
| 1 | Pretending to be owner of real property and conveying it | Buyer or true owner | False ownership |
| 2 | Disposing of encumbered real property and expressly representing it is unencumbered | Buyer or mortgagee | False warranty of clean title |
| 3 | Owner wrongfully takes personal property from lawful possessor | Bailee/lessee | Abuse of ownership |
| 4 | Executes any fictitious contract to another’s prejudice | Contracting party / third party | Simulated agreement |
| 5 | Accepts compensation for work not actually done | Payer/employer | Silent misrepresentation |
| 6 | Surety sells/encumbers real property pledged on a bond without court leave / before bond discharge | Obligee / court | Unauthorized disposition |
Elements and case law for each paragraph follow.
4. Common Threads
- Deceit/Fraud — Although Art. 316 crimes are mala prohibita, Philippine jurisprudence consistently requires the presence (or allegation) of deceit or false pretense.
- Prejudice/Damage — Actual or potential damage to another is an indispensable element.
- Intent to Defraud — The prosecution must prove intent (or at least conscious indifference) to cause such prejudice. (Other forms of swindling, A316 Revised Penal Code - Legal Resource PH)
5. Paragraph-by-Paragraph Analysis
5.1 Paragraph 1 — False Ownership of Real Property
Elements (Estrellado-Mainar v. People, 2015): (a) immovable; (b) accused is not owner but pretends to be; (c) performs an act of ownership (sale, mortgage, lease); (d) prejudice ensues. (G.R. No. 184320)
Key cases & principles
| Year | Case | Take-away |
|---|---|---|
| 1935 | People v. Uehara | Even a second sale (double sale) may qualify if deceit proven. (Other forms of swindling, A316 Revised Penal Code - Legal Resource PH) |
| 2023 | Gangano v. People (G.R. 256365) | Conviction sustained where deed of sale contained false recital that accused was registered owner. |
Defences: prove good-faith belief of ownership; show buyer was fully informed; invoke Civil Code Art. 1544 (double sale) where conflict is purely civil.
5.2 Paragraph 2 — Disposing Encumbered Real Property with False Warranty
Distinct requirement: express representation of an unencumbered title. A mere sale of mortgaged land is not criminal unless that express warranty appears. The Supreme Court stresses this in Naya v. Abing (acquittal) and reaffirmed in Estrellado-Mainar. (G.R. No. 246986 - LawPhil, G.R. No. 184320)
A newspaper Q&A, “She is no Swindler,” illustrates the same rule for practical transactions. (She is no swindler | Inquirer Business)
Tip: Include a clear “subject to existing mortgage” clause to avoid criminal exposure.
5.3 Paragraph 3 — Owner Wrongfully Taking Personal Property from Lawful Possessor
Rarely litigated, this mode targets owners who snatch back leased, pledged, or loaned movables ahead of agreed term, e.g., seizing hired sound equipment mid-event. It is not theft (owner title exists) and not carnapping (no motive to gain), but estafa because it violates the possessor’s lawful right. Courts analogise with commodatum doctrines. (Other forms of swindling, A316 Revised Penal Code - Legal Resource PH)
Elements: (a) accused owns the chattel; (b) another has lawful possession; (c) owner takes it without right; (d) prejudice results.
5.4 Paragraph 4 — Fictitious Contracts
Covers absolutely simulated contracts (Civil Code Arts. 1345–1346) when executed to another’s prejudice — e.g., sham deeds used to obtain loans. Although no recent Supreme Court conviction, trial-court cases routinely charge this where deeds are purely for show to mislead third parties. (G.R. No. 156081 - LawPhil)
5.5 Paragraph 5 — Unperformed Labor Compensation
Liability attaches upon acceptance of payment received under the belief it is for services rendered, when none were performed. It overlaps with civil solutio indebiti but becomes criminal once intent to keep the money despite demand appears. (Other forms of swindling, A316 Revised Penal Code - Legal Resource PH)
5.6 Paragraph 6 — Unauthorized Dealings by a Surety
A 1941 Supreme Court ruling (G.R. 47804) sustained conviction where a surety sold land listed in his bond before release, holding that “actual damage is immaterial; the gravamen is the unauthorized act.” The paragraph now also covers mortgages and any encumbrance. (G.R. No. L-47804 - LawPhil)
6. Penalties, Prescription & Jurisdiction
| Matter | Rule |
|---|---|
| Imposable penalty | Arresto mayor (min–med) + fine; Art. 64 mitigation/aggravation rules apply. |
| Effect of RA 10951 | No amendment to Art. 316; fine still tied to damage not to exceed 3× thereof. (Republic Act No. 10951) |
| Civil liability | Restitution + interest (per Gangano, 6 % p.a.) |
| Venue/Jurisdiction | Metropolitan/Municipal Trial Court (since max prision term ≤ 6 months). |
| Prescription | 5 years (Art. 90, felony punishable by arresto mayor). |
| Probation | Normally available; probation may be conditioned on restitution. |
7. Drafting the Information — Prosecutorial Check-List
- Cite correct paragraph.
- Allege every element, including express representation for ¶ 2. (Failure led to acquittal in Naya.) (G.R. No. 246986 - LawPhil)
- Detail the deceit (false title, warranty, simulation, etc.).
- State prejudice/damage and its money value (for the fine).
8. Defences & Mitigating Strategies
- Good faith / lack of deceit (always fatal to the charge).
- Absence of damage (e.g., buyer recovered price in full).
- Compromise after filing — does not extinguish criminal liability, but may justify probation or mitigate penalty.
- Prescription — count 5 years from discovery and filing of complaint, not from contract date when fraud was concealed.
9. Interplay With Other Laws
| Related Law | Distinction |
|---|---|
| Art. 315 (General Estafa) | Broader, value-graduated penalties; Art. 316 is specific acts with fixed penalty. |
| Art. 318 (Other Deceits) | Catch-all for fraud “not mentioned” elsewhere; Art. 316 precedes Art. 318 in application. |
| Civil Code Art. 1544 (Double Sale) | Gives civil remedies; Art. 316 ¶1 adds criminal liability if deceit present. |
| BP 22 (Bouncing Checks) | Independent of Art. 316; the same transaction may give rise to both offenses. |
10. Practical Compliance Tips for Real-Estate & Commercial Actors
- Use certified true copies of titles and disclose encumbrances on face of the deed.
- Insert “no-encumbrance” reps only if absolutely sure; otherwise qualify.
- Sureties should obtain court leave before moving pledged property.
- Owners of lent movables should send formal demand or file replevin instead of “self-help” seizure.
- Retain paper trail (receipts, acknowledgements) to negate false-payment allegations under ¶ 5.
11. Key Take-aways
- Article 316 is deceptively short but prosecutes six distinct fraud modes.
- Deceit + Damage are the beating heart; lack either and the case collapses.
- Information-drafting precision—especially under ¶ 2—regularly decides acquittals or convictions.
- Penalties remain light (arresto mayor) but reputational and restorative consequences are heavy.
- Recent Supreme Court activity (2015 – 2024) shows continuing vigilance, particularly in land deals (e.g., Gangano, Estrellado-Mainar).
Understanding these nuances allows real-estate professionals, creditors, buyers, and sureties to transact safely while giving counsel the doctrinal ammunition to prosecute—or defend—Article 316 charges effectively.