NBI nabs 3 tech experts for telecom fraud

Three cyber technology specialists engaged in unauthorized use of facilities belonging to a legitimate telephone
company were arrested by the National Bureau of Investigation (NBI) agents in Makati City recently.
NBI Director Nonnatus Caesar R. Rojas identified the suspects as: Dandin Calvez Varona, IT Specialist of East West
Placement Center Inc., and a resident of Pasay City; Adrian Jay Cardenas Garcia, IT Technical Support of East West
Placement Center Inc., a resident of Makati City; and Jefferson Madrid Bolivar, Computer Technician, of East West
Placement Center Inc., of Taguig City.
At large is Rizaline O. Dormiendo, President and CEO of East West Placement Center Inc.
Investigation by the Anti-Fraud and Action Division (AFAD) headed by Atty. Cesar A. Bacani disclosed that on June 17,
2013, the Smart Communications, Inc. through its counsel sought NBI investigative assistance about the illegal
international simple resale (ISR) activities, known as Toll By Pass against the suspects.
ISR is a fraud committed against network operators by routing and completing international long distance calls, without
proper authority to local subscribers using cables, antenna, air wave or frequency, broadband/internet protocol (IP)
services, telephone switching equipment and SIM cards.
With this illegal activity, the ISR operator is able to evade payment of international gateway facilities (IGF) fees and
taxes due the Philippine government by routing the international calls directly to an unauthorized device and thereby
gaining undue advantage over legitimate networks and operators because they can charge lower fees.
In the course of the investigation, Smarts representatives Engrs. Marlouie Ramos and Kris Anne Joy Domingo of
Smarts Anti-Frauds Engineers and Integrated Revenue Managements Voice Fraud Management Team (VFMT)
disclosed the illicit activities of suspects. A certification of the Compliance, Fraud and Investigation Services,
Department of Smart Communications shows that their offices has incurred losses in the amount of P932,036.71 due to
IRS committed by suspects.
A series of test calls was conducted by Smart representative and was confirmed that ISR activity is being committed at
the suspects office, East West Placement Center Inc. located at No. 1059 Metropolitan Avenue, Rizz Building, San
Antonio Village, Makati City.
Surveillance was conducted and was further confirmed the illegal activities of the suspects at the said place. On July 1,
2013, a search warrant was applied for and issued by the Regional Trial Court, Malabon City against the premises of
suspects in Makati City.
On July 2, 2013, after proper coordination with the local police, operatives of the NBI-AFAD, together with lawyers and
representatives of Smart Communication Inc. served the search warrant in the presence of John Patrick Libongco, Legal
Associate of East West Placement Center, Inc. Consequently, Varona, Garcia and Bolivar were caught inside the server
room located at the 3rd floor office of their office where the illegal international simple resale (ISR) activities is being
committed. Two test calls were again conducted by Domingo as was further confirmed that ISR is being committed
using the SIM cards found at the said premises.
A certification from Bala shows that Smart Communications Inc. has incurred losses during the service of the said
search warrant. Consequently, articles subject of the offense were seized such as computer, SIM boxes, SIM cards,
switching equipment and among others.
Suspects were arrested and brought to the NBI. However, Dormiendo was not present during the implementation of the
said warrant.
Charges for violation of Art. 308 of the Revised Penal Code (Theft) were filed against the suspects before the Makati
City Prosecutors Office.