The Department of Justice (DOJ) will conduct a preliminary investigation into the complaint filed by the Securities and Exchange Commission (SEC) against Villar Land Holdings Corp. over alleged market manipulation and insider trading.
Manuel Villar rejected the allegations, saying the company upheld the highest standards of good corporate governance.
DOJ spokesperson Polo Martinez said: “After undergoing initial evaluation, the complaint lodged by the SEC against Villar Holdings Corp. et al. with the DOJ will proceed with preliminary investigation for alleged violations of the Securities Regulation Code.”
He shared that subpoenas have already been served on the respondents. Martinez explained that the Justice department will determine whether there is merit to the allegations by the SEC.
He added that, as a matter of procedure, all respondents will be given an opportunity to present their defenses.
In January, the SEC filed the complaint charging the company with alleged violations of the Securities Regulation Code (SRC) for making false or misleading statements and engaging in acts that operated as fraud or deceit upon investors.
It stemmed from the commission’s investigation into the company’s public disclosures and trading activities, which allegedly misled investors and distorted the market price of the company’s shares.
Among the respondents were Villar Land chairperson and former senator Manuel Villar, former senator Cynthia A. Villar, and directors Cynthia J. Javarez and Manuel Paolo A. Villar.
Meanwhile, senators Camille Villar and Mark Villar, as well as independent directors Ana Marie Pagsibigan and Garth Castañeda, were also named respondents.
Villar Land and its directors meanwhile welcomed the opportunity to explain their side and respond to the allegations in the complaint at the proper forum. The company said it is fully prepared to cooperate with the proper authorities and are confident that an impartial panel will find that no violation of law was committed.
In view of the ongoing preliminary investigation by the DOJ, the company and its directors will refrain from making further statements on the matter at this time.
