The Securities and Exchange Commission (SEC) has filed a criminal complaint against Abra Mining and Industrial Corp. (AR), its directors, officers and certain stockholders and even against its transfer agent for unauthorized and fraudulent trading.
This developed in the wake of earlier sanctions in which the personalities involved were merely slapped with a fine to drive the message home.
But in a complaint-affidavit the regulator filed with the Department of Justice, the SEC charged the personalities with 441 counts of violations of the Securities Regulation Code and the Revised Corporation Code allegedly occurring from 2015 to 2019.
The SEC also asked the DOJ to institute civil and criminal forfeiture, including the penalty of asset preservation and other appropriate action under the Anti-Money Laundering Act of 2001.
Named respondents were Abra Mining president James G. Beloy, corporate secretary Amelia G. Beloy, directors Conde Claro C. Venus, Carmelo Rafael D. Tansengco, Joel Albert G. Beloy and Ma. Belinda T. Gaskell.
The SEC also sued the officers of Asian Transfer and Registry Corp., including its chairman and president Arline B. Adeva, corporate secretary Premy Ann G. Beloy and treasurer Joel Albert G. Beloy, who concurrently serve as director; assistant corporate secretary Joseph M. Acuesta; and director Ma. Agnes B. Hoffman.
Similarly charged for alleged collusion with Abra Mining were stockholders Jubileum Air and Sea Logistics Inc., Andrei Vincent Freight Services Corp., Ferdinand U. Collado, Leila V. Collado and Susan May I. Gacelo.
The Collados are incorporators, beneficial owners and officers of Jubileum and Andrei while Gacelo is a marketing representative at 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,” according to the complaint.
The SEC found discrepancies in the number of Abra Mining shares registered versus those listed in the Philippine Stock Exchange and those lodged with Philippine Depositary and Trust Corp.
The discrepancies arose from the issuance of Abra Mining shares totaling 169.05 billion under 474 stock certificates in favor of the Collados, Gacelo, Jubileum and Andrei between 2015 and 2019.
The SEC earlier came down hard on Abra Mining with a penalty of more than P560 million, revoked its registration statement and permit to sell securities, disqualified its officers and directors and its transfer agent as well.
