The order was signed by Pasig Prosecutor Fernando H. Dumpit.
In the order, Dumpit said: "Based on the evidence adduced, there exists a sufficient ground to engender a well-founded belief that crime of large-scale estafa in violation of Article 315 of the Revised Penal Code, has been committed and respondents are probably guilty thereof and should be held for trial."
Dumpit said all the elements of estafa by means of deceit under Article 315, subdivision 2 (a) of the Revised Penal Code were present.
Among these elements were: the offended party was induced to part with big money or property because of the fraudulent means; such false pretense was executed prior to or simultaneously with the commission of the fraud; and that as a result thereof, the offended party suffered damage.
Among the company’s owners are Manuel Roldan Jr, Radiacion Badias, Jenilyn Condes, Roldan Estacio, and Jonathan Condes.
Glasgow was issued a cease-and-desist order by the SEC for offering to the public investment contracts without prior registration with the corporate regulator. As a come-on, Glasgow promised 15 percent interest a month for six-month placements. Upon signing of the contract, investors were issued seven post-dated checks, covering the six monthly interest payments and the principal.
Section 8.1 of the Securities Regulation Code provides that no security shall be sold to the public unless a registration statement has been filed and duly approved by the SEC.
The Pasig prosecutor has elevated the case to the Pasig Regional Trial Court. The bail recommended for each respondent is P40,000.
The investigation into the case was prompted by the filing of a complaint by a group of six individuals who had invested a total of P1.165 million.
These individuals were reportedly not on the list of investors submitted to the SEC.
According to the SEC, there were 625 investors who claimed that they invested around P141.39 million but their names were not on the list of investors submitted by Glasgow.
There were also 1,168 individuals and groups in the Glasgow list who supposedly has a net investment of some P126.8 million but they too were not on the list of investors that filed claims with the SEC.
The SEC has imposed a P13.5-million fine on Glasgow for unauthorized sale of securities. SEC officials said Glasgow was willing to settle the fine in exchange for the dropping of charges against the company, its officers and owners.
SEC said the investment contracts issued by Glasgow fall under the src’s definition of securities and should therefore have been registered with the commission prior to distribution to the public.
An investment contract is defined under the src as a "contract, transaction or scheme…whereby a person invests his money in a common enterprise and is led to expect profits primarily from the efforts of others."