The Department of Justice (DOJ) will soon 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,” Prosecutor General Benedicto Malcontento said on Tuesday.
Last May 3, the SEC filed before the DOJ a criminal complaint against Abra Mining and its officers for 441 counts of alleged violations of Republic Act No. 8799, also known as the Securities Regulation Code, and RA 11232 or the Revised Corporation Code (RCC).
Named as respondents by the SEC were AR President James Beloy, Corporate Secretary Amelia 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 Remulla earlier directed the National Prosecution Service (NPS) to exhaust all resources to punish AR, 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,” Remulla said.
“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,” the DOJ chief added.