The Securities and Exchange Commission (SEC) has caught Abra Mining and Industrial Corp. allegedly trading unissued and unlisted shares from 2015 to 2019 and slapped it a fine of some P560 million.
In a decision promulgated on 8 April this year, the SEC Markets and Securities Regulation Department found the business guilty of violating Section 26 of Republic Act 8799, or the Securities Regulation Code, and Section 61 of Republic Act No. 11232, or the Revised Corporation Code.
Also found liable were company president James G. Beloy; corporate secretary Amelia G. Beloy; directors Conde Claro C. Venus, Carmelo Rafael D. Tansengco, Premy Ann G. Beloy, and Joel G. Beloy; and former director Belinda T. Gaskell.
Separately, the MSRD also found the transfer agent, Asian Transfer and Registry Corp., its president Arline B. Adeva, corporate secretary Premy Ann, assistant corporate secretary Joseph M. Acuesta, and treasurer Joel, 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.
In another decision, the MSRD held Abra Mining stockholders Ferdinand U. Collado, Leila V. Collado, Susan May I. Gacelo, Jubileum Air and Sea Logistics Inc. and Andrei Vincent Freight Services Corp., liable for violations of the SRC.
All officers, company directors, their transfer agent, and the stockholders are disqualified and prohibited from serving or acting as employee, officer, or director of a registered financial intermediary or issuer of registered securities under the supervision of the SEC for five years.
Abra Mining shares suspended from trading and last traded on 3 March 2021 closed at P0.0046 apiece.
Abra Mining shares lodged with Philippine Depositary and Trust Corp. were found in excess of the number of listed, registered, issued and subscribed shares submitted in company filings with the SEC.
The number of shares lodged with the PDTC totaled 258.95 billion versus that listed by the Philippine Stock Exchange of only 72.94 billion.
Shares indicated in latest approved registration statement total only 95 billion against issued and subscribed shares in corporate documents of only 99.29 billion and 199.29 billion, respectively.
Illegally issued shares totaling 169.05 billion covering 474 stock certificates were found to have been made from 2015 to 2019. These illegally issued shares were lodged and traded on the PSE in numerous transactions.
The SEC dismissed the denials and lack of knowledge interposed by company officers and directors, saying their acts “can only be attributable to their gross negligence in the performance of their duties.”
In addition to administrative sanctions, the SEC revoked the company’s registration statement and certificate of permit to sell.
