THE Department of Justice has recommended the indictment of former Philippine Stock Exchange employee Jose Cecilio Peñaflor and four others implicated in a P100-million investment scam.
In a 13-page resolution, the DoJ said it found sufficient basis to hold Peñaflor, his brother Angelo, John Benedict Aguzar, Rafael Sigua and Michael Rosales criminally liable for syndicated estafa as complained by one Joyce Marie Jao.
In her complaint, Jao accused the respondents of enticing her into investing P4 million in ABS-CBN Corp. stocks with a promised interest of “around 50 percent.” She filed the complaint earlier this year after they failed to pay her P10 million to cover her investment and interest.
The respondents allegedly claimed that they were authorized by the Securities and Exchange Commission to engage in stock trading. The DoJ said it found probable cause to file the case in court and recommended that no bail be set.
“In this case, the intent to deceive and induce complainant to shell out her money in the guise of investing the same to shares offered in the stock market is apparent,” stated the resolution approved by Prosecutor General Claro Arellano.
The DoJ also approved the filing of a separate case of bouncing checks against Peñaflor.
Peñaflor, the PSE’s former assistant head of market education, was arrested last February, but he was ordered released by Assistant State Prosecutor Rodan Parrocha after inquest proceedings.
The prosecutor explained that the charges against Peñaflor pertained to “previous acts or past series of transactions that [Jao] had with respondent” and not for the act of receiving an additional investment of P500,000 for which he was arrested for by the National Bureau of Investigation.
But the DoJ still proceeded with the preliminary investigation against Peñaflor and the four others.
Similar complaints by other victims have been filed against Peñaflor before the Quezon City Prosecutor’s Office and the NBI.
PSE president Hans Sicat earlier alleged that Peñaflor, using his “silver tongue,” convinced investors to course their money through him.
The SEC, the corporate regulator, said Peñaflor has been using the names of accredited brokers to convince investors that his transactions are legitimate.
Sicat, however, said the PSE had conducted a check on its accredited brokers and none was found to be involved in Peñaflor’s allegedly fraudulent schemes.
In an advisory published last December, the PSE issued a warning to the investing public against Peñaflor, who has not been connected with the PSE since 2013.