A Japanese businessman, who is being accused of ripping off thousands of Filipinos of their hard earned cash in a pyramiding scheme, is now being alleged by former business partners of bleeding the coffers of a local bank.

Francis Yuseco Jr., a former top director of Unitrust Development bank, yesterday accused Japanese businessman Genta Ogami of using the bank as a 'milking cow' and as base for his 'cross-border pyramiding' business.

Yuseco, in a press briefing, said that Ogami used the bank to support and expand his pyramiding business in Asia. Ogami's network also covers Japan and Indonesia.

His group is also reportedly trying to establish operations in Italy and possibly in other countries. "They intend to expand that machinery," Yuseco said. Unitrust unexpectedly close down early this week following a bank run caused by reports of Ogami's heavy withdrawals.

Ogami was cast into controversy early last year after the Securities and Exchange Commission (SEC) outlawed his pyramiding scheme under the business name G. Cosmos.

G. Cosmos, which has been in the country for the past two years, was ordered closed after numerous complaints from investors about their money not being returned by the firm.

Yuseco said Ogami, who also sits as one of the directors of Unitrust, managed to spirit out $1.5 million from the bank out of the $ 33.3 million he earlier asked as loans from the bank's former officials.

He noted that the board rejected Ogami's request for P170-million because it was an unsecured loan. Yuseco also said that Ogami used Unitrust funds to settle personal hotel expenses amounting to $47,058 and a two-page newspaper ad worth $33,333.

Ogami was also said to have paid P2.4 million for the rental of a 'staff house' for Japanese associates in Makati City. "We left the bank with $3.9 million total deposit and it turned to $843,000 this January when it declared a bank holiday," Yuseco noted.

He blamed Unitrust's misfortunes on the "mismanagement of the bank and the loss of the confidence of the depositors".