After Vera Files released the story on the property of the Arroyo brothers, Mikey and Dato, congressman sons of Gloria and Mike Arroyo, I received a lot of letters giving additional information on the family’s alleged hidden wealth.
By the way, I am a trustee of Vera Files, a group of journalists that undertakes a deeper look at current issues. I am one of the four writers of the articles “Arroyo sons acquire U.S. homes, businesses after election to Congress” and “Following the Mikey trail: 2004, 2007 declarations show no campaign contributions”.
One of the letters I got came from an American who is in the finance business. He asked that his identity be withheld. I’ll call him “Jay”.
Jay said, “I’ve been frustrated with this story, because I know Mikey will be protected by his fellow crooks in the House, the crooked Ombudsman, and of course, his crooked mother. When I read about the Reconveyance of Deed on your blog, I realized that Mikey had broken multiple US laws and our justice system will investigate unless pressured not to by the State Department or the White House.”
Jay submitted to the FBI Tips Line and to the Federal National Mortgage Association commonly known as Fannie Mae “a report of likely: mortgage fraud, mail and wire fraud, money laundering, and kleptocracy by a foreign government official.”
He requested that his report be forwarded to the Financial Crimes Enforcement Network (FinCEN, US Department of Treasury).
Here’s part of his letter:
“There is a breaking news story in the Philippines regarding the sons of Philippines President Gloria Macapagal Arroyo. They have obviously broken several Filipino laws (unexplained wealth, perjury, filing false Statements of Assets and Liabilities, tax evasion,and plunder.) They won’t be prosecuted there because of the corrupt justice system. What caught my attention, is that at least one of them is violating multiple US laws with a clever money laundering scheme.
“Juan Miguel “Mikey” Arroyo is the son of Gloria Macapagal Arroyo, President of the Philippines. After his mother took power, he ran for a seat in the Filipino House of Representatives. His salary is less than $12,000 US Dollars per year. In 2006 he acquired a $1.32 million property at 1655 Beach Park Blvd. in Foster City CA. There was a $900,000 mortgage on the property through IndyMac Bank, which was taken over last year by the FDIC when it failed. To qualify for a “stated income” or “liar loan”, he would’ve fraudently claimed an income of at least $275,000 to be able to pay the mortgage, and probably provided fraudulent documents as proof of income. (His salary does not even cover the $14,000 in property taxes due each year) They also would have falsely claimed to be Permanent Residents or US Citizens on the mortgage.
“A mortgage broker told me that most likely they just lied and said they were US Citizens so as not to produce a Green Card. Remember, he is a foreign legislator and spends most of the year in the Philippines. He also would’ve claimed this as a primary residence when it was really a vacation home. Those IndyBank loan documents should be subpoenaed and reviewed to prove the fraud. He later transferred title to his wife under her maiden name of (Maria)Angela Arroyo Montenegro as way of hiding assets as a lawmaker in the Philippines.”
Jay submitted as background the VERA Files Aug. 31 story on the houses of Mikey and Dato Arroyo in San Francisco.
Jay further said in his letter, “As a foreign government official, Mr. Arroyo could not walk into my office and open a seven-figure brokerage account. I would have to comply with Enhanced-Due Diligence procedures and verify the source of his wealth to comply with section 312 of the Patriot Act. He devised a clever scheme to launder $1.39 million dollars.
“On April 15, 2008, the deed was reconveyed to Angela Arroyo Montenegro. This means they paid off $900,000 in mortgages in two years. Surely they know US banks file Suspicious Activity Reports (SARs) and Currency Transaction Reports (CTRs). As far as I know, there is no such reporting for repaying a mortgage early. How does someone who earns $12,000 a year pay off $900,000 in mortgages in two years? His family is notoriously corrupt and it is rumored he receives large cash payoffs from the illegal numbers game “jueteng” from his home province of Pampanga. (Jueteng payoffs led to the impeachment and ouster of former Philippines President Joseph “Erap” Estrada”. Mikey’s mother was Vice President and assumed the role of President after Estrada’s ouster.)
“The house is currently for sale. This means that upon the sale of the property, a Title Company check would be issued for $1.3 million in the name of Angela Montenegro. She could walk into almost any US bank and deposit into account and no questions would be asked because it is clearly the proceeds from a real estate sale and 99% of people would not know she is the daughter-in-law of the President of the Philippines. The money has successfully been laundered at that point.
“Per the earlier story referenced at www.verafiles.org , his brother Diosado “Dato” Ignacio Arroyo (also a congressman in the Philippines.) paid $570,000 cash for a luxury condominium at 177 California St., Unit 503 San Francisco. Gramercy Place . He claims his father-in-law paid for it, but that should be investigated as well.
“Violations of Section 312 of the US Patriot Act and the US National Strategy to Internationalize Efforts against Kleptocracy.”
Jay provided links to Inquirer and PCIJ websites in supporting his allegation that, “President Gloria Macapagal Arroyo and her husband Jose Miguel “Mike” Arroyo are notorious kleptocrats. For background, google any of the following terms: Jose Pidal, NBN/ZTE Scam, IMPSA bribe, Hello Garci, Joc Joc Bolante, Northrail, NAIA Terminal 3/PIATCO, Jun Lozada, Diosado Macapagal Boulevard,.etc. Even the World Bank issued a report naming Mike Arroyo in shaking down a foreign businessman.”
Jay told the FBI and Fannie Mae, “I don’t have evidence of them breaking US laws, but it is clear that at least Juan Miguel “Mikey” Arroyo should be investigated for mortgage fraud, wire and mail fraud, money laundering, and kleptocracy.”