DOJ issues HDO vs Tibayan owners

The Department of Justice has issued a hold-departure order against the seven incorporator-directors of mutual fund firm Tibayan Group Investment Company Inc. (TGICI) to prevent them from running away from their responsibilities to thousands of investors.

Considering the enormous public interest involved, the DOJ has ordered the Bureau of Immigration to include in the hold-departure list TGICI president Jesus Tibayan, Palmy Tibayan, Ezekiel Martinez, Liborio Elacio, Jimmy Catigan, Rico Puerto, and Nelda Baran.

The move was in response to the request of the SEC for the issuance of a hold-departure order against them to ensure that they do not leave the country and that they face the consequences of the mistakes they have committed.

In its order, the DOJ said: "Considering the huge amounts involved, which based on the sworn complaints, contracts and other documents gathered during the investigation, are in hundred millions of pesos, as well as the number of victims which are possibly in thousands, the Justice Department finds an urgent need to issue a hold-departure order…"

The SEC issued last month a cease-and-desist order on TGICI and its affiliates for violating Section 8.1 of the Securities Regulation Code, which prohibits the sale of securities without prior registration with the Commission.

TGICI issues unregistered securities through the use of multiple front and conduit corporations.

The Anti-Money Laundering Council has also frozen the assets of the company, paving the way for an investigation on the group’s possible violation of the Anti-Money Laundering Act.