Pearlbank files raps vs Wincorp officials

Pearlbank Securities, Inc. (Pearlbank) recently filed a criminal complaint for falsification of commercial and private documents against officers of scandal-plagued Westmont Investment Corp. (Wincorp) with the Department of Justice.

Named respondents were Antonio Ong, president; Anthony Reyes, vice president for operations and administration; Gilda Lucena, vice president for treasury; Eric Espiritu, senior manager, corporate finance; Nemesio Briones, chief legal officer and assistant corporate secretary; Loida Tanundong, assistant manager legal department; and John or Jane Does.

Pearlbank alleged that the respondents stated in certain documents, such as confirmation advices which they signed and issued to certain investors, that Pearlbank was the borrower of their funds.

Pearlbank said it has no such outstanding loan obligations with Wincorp or any of its investors. Pearlbank pointed out that there are no valid and outstanding promissory notes, or any other evidence of indebtedness for that matter, that would prove its alleged liabilities.

Pearlbank had earlier filed a complaint for "fraud and misrepresentation" against Wincorp and its responsible officers with the Securities and Exchange Commission.

In its SEC complaint, Pearlbank prayed that confirmation advices indicating it as borrower of invested funds be declared to be without force and effect. It also sought damages and attorney’s fees. However, with the recent effectivity of the Securities Regulation Code, jurisdiction over the case was transferred to the Regional Trial Court.

But unlike in the SEC, now RTC, case, where the liability of Wincorp and its officers is only civil or monetary in nature, the respondents in the criminal case before the DOJ could face up to six years in prison, if eventually found guilty.

The DOJ case is presently undergoing preliminary investigation by State Prosecutor Rosario R. Larracas, who is also in charge of other pending bank/investment fraud cases. Pearlbank is represented by noted retired prosecutor and trial court judge, Dennis M. Villa Ignacio.

In a related development, the Prosecution and Enforcement Department of the SEC recently filed with the Department of Justice criminal charges for violations of the Revised Securities Act, now the Securities Regulation Code, against the responsible officers and directors of Wincorp, led by its former chairman of the board, John Anthony Espiritu, son of former Finance Secretary and Wincorp founding chairman, Edgardo B. Espiritu.

In its listing of the alleged borrowers of invested funds, the PED noted that Pearlbank’s alleged outstanding loan obligations are still being contested in the SEC, now RTC, case filed by Pearlbank.