The Philippines Court of Appeals has dealt a body blow to Robert Gustafsson’s criminal conspiracy.
In November 2013, Manila police raided several business process outsourcing (BPO) companies that provided support services to Philippines-licensed online gambling operator Bodog Asia.
The search warrants were obtained using information provided by Gustafsson, the company’s ex-CEO, who claimed the operator was taking wagers from Philippines residents in violation of its gaming license.
The company, which claims Gustafsson was dismissed earlier that year for incompetence, flatly rejected the allegations. It requested and was granted a temporary restraining order preventing police, prosecutors and the judge who issued the warrant from pursuing any further legal action using the evidence seized during the raid.
On May 29, the Court of Appeals made that preliminary injunction permanent and said all evidence seized during the raids was inadmissible due to its status as “fruit of the poisonous tree.”
The Court acknowledged that interfering with police investigations is not a matter to be considered lightly, but exceptions must be made when the complaints that sparked these investigations “have absolutely no basis in fact and in law.”
NO, NO, NO
Straight off the top, the Court observes that Judge Zaldy B. Docena of the Regional Trial Court of Malabon City had “no territorial jurisdiction over the place where the alleged crime was committed.” Judge Docena also erred by listing two separate laws on the warrant, a ‘scattershot’ approach forbidden by the country’s 1987 Constitution.
The search warrant was also deficient due to its lack of specifics on the items to be seized during the raids. The Court found the warrant’s list of office equipment to be “so general and sweeping” that law enforcement went on “a roving commission to seize whatever items could be found in the premises.”
But the primary justification for upholding the injunction was the Court’s view that there’d been no proper determination of probable cause to justify the warrants. Lending credence to Bodog Asia’s claims regarding Gustafsson’s incompetence, the Court found his statement to Judge Docena “so vague that one cannot tell if he indeed had personal knowledge of the alleged criminal activities.”
As for Gustafsson’s allegation about locals wagering on Bodog Asia, the Court notes that Docena asked Gustafsson to show him this illegal website using the judge’s computer, but Gustafsson was unable to find the page.
WHO WANTS TO EARN P200,OOO?
The Court’s decision means Gustafsson has exposed himself to charges of perjury, which will be added to his already crowded legal file. One month before the 2013 raids, Bodog Asia launched legal proceedings against their former CEO after an audit turned up evidence of the theft of over $160,000 and the planned heist of millions more.
In October 2014, a no-bail arrest warrant was issued for Gustafsson on a charge of qualified theft. Similar warrants were issued for two similarly disgruntled ex-staffers Sylvia Bernadette de Guzman and Sherwin Quiambao. A P100,000 reward was offered for information leading to their arrest but the troublesome trio slipped out of the country shortly thereafter.
De Guzman is believed to be in Singapore and Quiambao was last seen in Canada. There have been rumored sightings of Gustafsson in Manila, which has prompted the powers that be to double the reward to P200,000 per suspect. Ads have been taken out in several major local dailies announcing the increase and a street team is plastering neighborhoods with the wanted notices to ensure maximum visibility.
ALL ABOARD
According to a statement given to the police by Edwin Erpe, a junior member of the gang who was arrested last November, De Guzman was the engine driving the gang’s plans. This wannabe Ma Barker once attempted to embezzle money from a corporate account and threatened to cut out the tongue of the alert bank exec who questioned the transaction’s validity.
De Guzman’s antics were on full display in new charges filed against her on April 30. De Guzman (pictured right, in her best pirate disguise) has been accused of the theft of a $200,000 speedboat her former employer kept at a boathouse in Batangas City.
In April 2014, the local caretaker was making his rounds when he discovered several unfamiliar men hitching the boat to their Ford Expedition. One of these men told the caretaker to pretend he’d never seen them and to say that the boat was already gone by the time he noticed. The man then flashed a supposed bill of sale but wouldn’t let the caretaker read it.
The caretaker attempted to take the man’s picture, but the man stopped him and asked why the caretaker was taking the side of a foreigner over a local. The caretaker went to summon security, during which time two of the vehicles legged it, leaving the boat behind.
The two confused men in the remaining vehicle told the resort’s security team that De Guzman had been in one of the vehicles that fled. The men, who cooperated fully with security, said De Guzman had claimed ownership of the boat and offered to sell it for P4,000,000 ($89,000).
Under Philippine law, because the would-be thieves forcibly broke into the boathouse and physically moved the boat outside, the charge of theft applies the same as if their plot had succeeded.
DUH, SHERWINNING!
To avoid his arrest warrant, Quiambao fled to Canada, where his parents reside. Despite the distance, he has continued the fight against his former employer in the Philippines.
Edwin Erpe’s statement revealed that it was Quiambao who convinced a Philippine woman to file rape and kidnap charges against Bodog brand founder Calvin Ayre. The woman later told police that she’d been coerced her into filing the complaint and the charges were ultimately dismissed for lack of evidence. Despite this turnaround, Sherwin has reportedly directed this same girl into making similar allegations about other prominent Philippine residents.
Quiambao hasn’t been lying low, posting social media shots of he and his wife Michelle hanging in exotic locales. Does she know where Quiambao got the money to pay for these trips? If so, hope she’s still smiling when she’s charged with being an accessory after the fact.
WHY THEY DID IT
Aside from good old-fashioned greed, Gustafsson’s gang stole to get money to fund their own online gambling startup and a payment processing company. The online gambling company never happened but the payment firm did.
Transact24 Philippines – not to be confused with the Hong Kong-based Transact 24 – was launched with the help of Karl Rosengren, who co-founded the original Hong Kong payment firm but was forced out by the other co-founder. Last August, Rosengren reportedly fired Gustafsson for reasons unknown (but we suspect Bodog Asia has a theory).
SAD LEGACY
Last month’s Court ruling was a big win for Bodog Asia and for everyone who believes law enforcement shouldn’t be a tool in the hands of disgruntled employees. Already facing theft charges, Gustafsson was desperate to change the narrative, so he led the judge down the garden path and here we are.
Gustafsson’s falsehoods were aimed at Bodog Asia, but they marked the start of a series of unwarranted raids on BPO companies doing business with other Philippines-licensed online gambling operators. William Hill, Kambi Sports Solutions, Ole777 and others have been visited in this manner since Gustafsson told his tall tales.
At its core, this is a story about grifters. They saw an angle so they played it and it worked well in the short term. But their luck ran out and the blowback will cost them dearly. The legal cloud hanging over Gustafsson, de Guzman and Quiambao’s heads will follow them for the rest of their lives.