The Securities and Exchange Commission (SEC) said over the weekend it imposed P540-million fines against parties involved in the alleged unauthorized and fraudulent trading of unissued shares of Abra Mining and Industrial Corp.
The SEC’s Market and Securities Regulation Department (MSRD) said in a decision it found Abra’s directors, officers, transfer agent and certain stockholders guilty of violating Section 26 of Republic Act No. 8799, or the Securities Regulation Code (SRC), and Section 61 of Republic Act No. 11232, or the Revised Corporation Code (RCC).
It said it found Abra president James Beloy, corporate secretary Amelia Beloy, directors Conde Claro Venus, Carmelo Rafael Tansengco, Premy Ann Beloy and Joel Beloy and former director Belinda Gaskell guilty of unauthorized and fraudulent trading of unissued and unlisted shares from 2015 to 2019.
The MRSD said in a separate decision it found the company’s transfer agent, Asian Transfer & Registry Corp. and its president Arline Adeva, corporate secretary Premy Ann and assistant corporate secretary Joseph Acuesta guilty of violating Sections 26 and 52.1 of the SRC, and Section 36.4.3.2 of the 2015 implementing rules and regulations of the SRC.
Section 52.1 of the SRC provides that a transfer agent should make, keep and preserve records, furnish such copies thereof and make such reports, as the SEC may prescribe. The SRC rules further require the transfer agent to make available any or all of its books and record upon the commission’s request.
The MSRD also held several stockholders of Abra Mining liable for violations of Section 26 of the SRC.
The case stemmed from discrepancies in Abra shares lodged with Philippine Depositary and Trust Corp. (PDTC), which were in excess of the number of listed, registered, issued and subscribed shares submitted in the company’s filings with the SEC.