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Blanco was initially slapped with violations of Section 3(e) of R.A. 3019 or the Anti-Graft and Corrupt Practices Act and Article 217 of the Revised Penal Code or Malversation of Public Funds.
On December 20, 2001, Blanco was accused of embezzling and converting to his personal use P189,600 worth of cash advances that he received for the Christmas party of the employees.  Despite demands for him to liquidate the funds, he reportedly failed to do so.
In its ruling, the anti-graft court said that the prosecution failed to prove that the accused acted with manifest partiality, evident bad faith, and gross inexcusable negligence in the handling of the cash advances. ....

Mandaue City , Justice Kevin Narce Vivero , Sarah Jane Fernandez , Cheryl Zoleta Ouano , Serafin Guievelondo Blanco , Justice Karl Miranda , Sandiganbayan Sixth Division , Corrupt Practices Act , Revised Penal Code , Executive Secretary Cheryl Zoleta Ouano , Demand Letter , Associate Justice Karl Miranda , Chairperson Sarah Jane Fernandez , Associate Justice Kevin Narce , சாரா ஜேன் பெர்னாண்டஸ் , நீதி கார்ல் மிராண்டா , சிதைந்த கோப்பு ப்ர்யாக்டிஸஸ் நாடகம் , தேவை கடிதம் , இணை நீதி கார்ல் மிராண்டா , தலைவர் சாரா ஜேன் பெர்னாண்டஸ் ,