The Department of Justice (DOJ) has formally indicted Abra Mining and Industrial Corp. (AR), along with its officers, stock transfer agent, and several stockholders, for engaging in fraudulent securities trading from 2015 to 2019 — a move regulators say reinforces accountability and investor protection in the capital markets.
In a resolution dated 12 August, state prosecutors found probable cause to charge AR for violations of the Securities Regulation Code (SRC) and the Revised Corporation Code, after uncovering a scheme involving the unauthorized issuance and public trading of unregistered shares far beyond the company’s legal limits.
Among those indicted were AR officers James G. Beloy, Amelia G. Beloy, Premy Ann G. Beloy, and Joel Albert G. Beloy; stock transfer agent Asian Transfer and Registry Corp.; and stockholders Joseph M. Acuesta, Ferdinand U. Collado, Leila Collado, Susan May I. Gacelo, Andrei Vincent Freight Services Corp., and Jubileum Air and Sea Logistics Inc.
The Securities and Exchange Commission (SEC) filed the original criminal complaint in May 2024, after discovering that AR had issued and traded shares vastly exceeding the 95 billion shares registered with the SEC and the 72.94 billion listed with the Philippine Stock Exchange (PSE). As of February 2021, AR had lodged over 258.95 billion shares with the Philippine Depository and Trust Corp. (PDTC).
The DOJ found that the excess shares — which were neither registered nor fully paid — were sold below par value, and facilitated by the transfer agent for public trading. These actions resulted in significant monetary gains for the parties involved, while deceiving investors into purchasing essentially worthless securities.
SEC chairman Francis E. Lim emphasized the broader policy significance of the indictment, saying:
“The indictment of AR, its officers, stock transfer agent, and stockholders marks a vital step in upholding trust and confidence in our capital market… The SEC remains steadfast in its commitment to hold accountable any entity found to have violated that trust.”
Regulators said the fraudulent transactions were deliberately structured to mislead the public and inflate market activity, with AR knowingly submitting misleading disclosures to the PSE and SEC from 2014 to 2019.
Prior to the indictment, the SEC had already imposed over ₱560 million in fines on AR and its associates. All involved parties have been permanently disqualified from serving as officers or directors of any corporation in the Philippines.
Trading of AR shares has been suspended since March 2021.
