Ex-Camp John Hay developers indicted for P11.2M hotel unit scam

BAGUIO CITY — A panel of prosecutors of the Municipal Trial Court in Cities (MTCC) in Baguio City has recommended criminal charges for “other deceits” under Article 318 of the Revised Penal Code against two former Camp John Hay Development Corporation (CJHDevCo) executives over the alleged fraudulent sale of hotel units.

Named in the information are former CJHDevCo Chairman of the Board of Directors Robert John L. Sobrepeña and Fil-Estate Management Inc. (FEMI) Vice President and former CJHDevCo board member Ramon G. Jimenez, along with several unidentified “John Does.”

The executives allegedly, “by means of false pretense, fraudulent act or other pretense made or executed prior to or simultaneously with the commission of the fraud,” sold to complainants Mojica Galang and Erwin Galang the rights to Units 549 and 554 of the Forest Lodge Hotel at Camp John Hay. The sale, which began in December 2023, covered a lease period lasting until October 2046.

The complainants said they paid P11.2 million to FEMI, represented by Jimenez. According to the information, the accused “knew fully well that their representations were not true” because they concealed that the Original Lease Agreement, Restructuring Memorandum of Agreement, and other agreements between CJHDevCo and the Bases Conversion and Development Authority (BCDA) had already been rescinded. Despite this, the executives allegedly kept the payment and failed to return the amount despite demand from the complainants.

The prosecution said the elements of “other deceits” under Article 318 were sufficiently established, finding prima facie evidence and reasonable certainty of conviction against Sobrepeña, Jimenez, and several others. The offense carries a penalty of arresto mayor, or one to six months in prison, and a fine not less than the amount of damage caused and not more than twice the amount.

Camp John Hay was placed under BCDA control on 6 January 2025, following a Supreme Court ruling upholding a 2015 arbitral award that ordered the property’s return to the government. In April 2025, the Department of Justice formed a task force to investigate alleged fraudulent acts by CJHDevCo and its affiliates.