The Department of Justice (DOJ) is set to start the preliminary investigation of the criminal complaint filed by the Securities and Exchange Commission (SEC) against the directors, officers, transfer agents, and stockholders of Abra Mining and Industrial Corporation (AR).
“The case is set to be assigned to a prosecutor who will conduct the preliminary investigation,” said Prosecutor General Benedicto A. Malcontento on Tuesday, May 7.
Last May 3, the SEC filed before the DOJ a criminal complaint against AR and its officers for 441 counts of alleged violations of Republic Act No. 8799, the Securities Regulation Code, and RA 11232, the Revised Corporation Code (RCC).
Among those included as respondents by the SEC were AR President James G. Beloy, Corporate Secretary Amelia G. Beloy, and officers of Asian Transfer and Registration Corporation.
In its complaint, the SEC alleged that AR has been engaged in the unauthorized and fraudulent trading of shares from 2015 to 2019.
“The criminal complaint stemmed from discrepancies in the number of AR shares registered with the SEC for public offering, those listed in the Philippine Stock Exchange (PSE) and those lodged with Philippine Depository and Trust Corporation (PDTC),” the DOJ said.
Justice Secretary Jesus Crispin C. Remulla has instructed the DOJ’s National Prosecution Service (NPS) to exhaust all resources to punish AR and its officials and several of its stockholders believed involved.
“Shares or stocks are intangible vital elements of the country’s financial stability which fosters the growth of companies, providing an opportunity to every aspiring businessman to invest and be wealthy in life,” said Remulla.
“The State recognizes this role of business/corporate shares in our economy, hence, we are very serious in enforcing the laws related thereto in order to assure that economic opportunities in our communities will be fair and advantageous for each and every individual,” he also said.