The Securities and Exchange Commission (SEC) said over the weekend it filed a criminal complaint against Abra Mining & Industrial Corp. (AR), its directors, officers, transfer agent and certain stockholders for the alleged unauthorized and fraudulent trading of shares from 2015 to 2019.
It said in a complaint-affidavit filed with the Department of Justice (DOJ) on May 3 it charged the respondents with 441 counts of violations of Sections 8 and 26 of Republic Act No. 8799, or the Securities Regulation Code (SRC) and Sections 61, 62 and 63 of Republic Act No. 11232, or the Revised Corporation Code (RCC).
The SEC also slapped Abra Mining officials, transfer agent and certain stockholders with fines amounting to P560 million in April also for the unauthorized trading shares.
It included as respondents in the criminal case Abra Mining president James Beloy, corporate secretary Amelia Beloy, directors Conde Claro Venus, Carmelo Rafael Tansengco, Joel Albert Beloy and Ma. Belinda Gaskell.
The SEC also named as respondents Asian Transfer & Registry Corp., its chairperson and president Arline Adeva, corporate secretary Premy Ann Beloy and treasurer Joel Albert Beloy, who concurrently serve as directors at AR, assistant corporate secretary Joseph Acuesta and director Ma. Agnes Hoffman.
The SEC said it also asked the DOJ to institute civil and criminal forfeiture, including the accessory penalty of asset preservation and other appropriate action against the respondents under Republic Act No. 9160, or the Anti-Money Laundering Act of 2001, as amended.
The SEC also charged the stockholders who allegedly colluded with AR, including Jubileum Air and Sea Logistics Inc., Andrei Vincent Freight Services Corp., Ferdinand Collado, Leila Collado, and Susan May Gacelo. The Collados are incorporators, beneficial owners and officers of Jubileum and Andrei, while Gacelo serves as a marketing representative of Andrei.
“Respondents AR and Asian Transfer, through their respective board of directors, and the Collados, were, acting in concert, engaged in the offering and selling of unregistered AR shares in violation of Sections 8 and 26 of the SRC in connection with Sections 61, 62 and 63 of the [RCC] of the Philippines to the prejudice of the investing public,” the SEC complaint read.
The SEC’s Markets and Securities Regulation Department (MSRD) said that in its investigation it found that Abra Mining shares lodged with the PDTC were in excess of the number of listed, registered, issued and subscribed shares submitted in the company’s filings with the SEC.
The SEC said illegal issuances of the company’s shares totaling 169.05 billion shares covering 474 stock certificates were found to have been made from 2015 to 2019.
“The gravity of the violation committed by respondent AR for the issuance of certificates representing unregistered AR shares, Asian Transfer, as the Transfer Agent for allowing the unregistered shares to be offered to the public and by the Collados for offering the unregistered AR shares to the public, has been sufficiently proven,” the SEC said.
“The violation committed by the respondents is so grave and serious as it amounts to circulating worthless AR shares to the prejudice of the investing public,” it said.