The Court of Appeals (CA) has ordered the dismissal of the estafa charges filed against Japanese gaming mogul Kazuo Okada who was former chairman and chief executive officer (CEO) of Okada Manila, a posh casino hotel in Paranaque City.

Also dismissed were the charges filed against Kazuo Okada’s associate, Takahiro Usui, in a 24-page decision written by Associate Justice Alfredo D. Ampuan and concurred in by Associate Justices Pedro B. Corales and Bonifacio S. Pascua.

With the dismissal of the charges, the CA recalled and quashed the warrants of arrest issued by the Paranaque City regional trial court (RTC) against Kazuo Okada and Usui.

The CA decision granted the petition filed by Kazuo Okada who challenged the 2019 ruling of the RTC.

The dispositive portion of the decision dated Dec. 9, 2021:

“WHEREFORE, the instant petition for certiorari is GRANTED. The order dated 06 May 2019 and the order dated 04 July 2019 in Criminal Case Nos. 2018-3100 to 3102 issued by the Regional Trial Court, Branch 257, Paranaque City are REVERSED and SET ASIDE.

“Criminal Case Nos. 2018-3100 to 3102 are hereby DISMISSED, and Warrant of Arrest issued against petitioner Kazuo Okada and Takahiro are hereby RECALLED and QUASHED. SO ORDERED.”

The CA ruled that the RTC abused its discretion when it issued arrest warrants despite the lack of probable cause against Kazuo Okada and Usui, former president and chief operating officer (COO) of Tiger Resort Leisure and Entertainment, Inc. (TRLEI).

“In this case, apart from the procedural defect of failing to issue an order explaining his finding of probable cause, the lower court likewise gravely abused its discretion in issuing the warrant of arrest when the records suggest that there is no probable cause to indict petitioner (Kazuo Okada) and Usui of the crime charged against them,” the CA said.

Case records showed that the criminal charges against Kazuo Okada and Usui were filed in 2018 after government prosecutors found probable cause to indict them for estafa.

The complaints against them were filed by TRLEI which claimed that they misappropriated company funds when Kazuo Okada was the chairman and CEO while Usui was the COO. They were booted out of TRLEI in 2017.

In its criminal charges, the DOJ alleged that Kazuo Okada, in conspiracy wth Usui, received $3,158,835 in salaries and consultancy fees without any authority or approval of the TRLEI Board.

They refused to return the money despite demand, the indictment stated.

In 2019, the RTC found probable cause and issued the arrest orders against Kazuo Okada and Usui.

In reversing the RTC’s ruling, the CA said that the amounts paid to Kazuo Okada represented his compensation on account of the services that he rendered to the corporation and that Usui was empowered to fix the same.

“To recall, the subject amount in this case was not entrusted to petitioner for his safekeeping or administration. Rather, it was paid to him by the corporation in consideration of the services that he rendered as a consultant of TRLEI and as its former CEO. As such, petitioner became the owner of the subject amount,” the CA said.

At the same time, the CA said that Kazuo Okada cannot be accused of misappropriating the amount that he received from TRLEI, as he is the owner of the same.

“At most private respondent (TRLEI) has the opportunity to seek recourse in a civil case if it truly believes that the disbursements were unauthorized. Unfortunately, it cannot insist on pursuing the instant criminal case against petitioner and Usui in light of the absence of probable cause to indict them for the crime,” the CA stressed.

The CA also said:

“All told, the facts in this case show the absence or probable cause against petitioner, seeing as the elements for Estafa under Article 315, paragraph 1(b) of the RPC (Revised Penal Code) are clearly wanting.

“In light of this finding, the allegation that Usui conspired with petitioner in swindling money to the prejudice of the corporation likewise fails.”