MANILA, Philippines - The Securities and Exchange Commission (SEC) has filed a criminal complaint against Ideal Pension Plans before the Department of Justice for violation of pre-need rules.
In cases where the complaint is criminal in nature, the SEC endorses the charges to the Justice Department for preliminary investigation and prosecution as provided under the law.
In its complaint, a copy of which was obtained by The STAR, the SEC claimed that owners and officers of Ideal Plans have used planholders’ money for their personal benefit and failed to settle obligations to planholders.
Ideal Plans also failed to comply with the trust fund and capital requirements as well as submit actuarial valuation report and audited financial statements in violation of the rules on pre-need plans.
The company filed early this month a petition for voluntary insolvency before the Makati Regional Trial Court after failing to pay P300 million in retirement claims by its over 6,000 customers across the country. It claimed that its assets, amounting to P112.58 million, are not enough to cover its total liabilities which stood at P297.94 million.
In its complaint, the SEC asked that Ideal Plans’ owners and officers Carmen Gabriel, Ma. Rizalina Kua, Epifania Micaller and former senator Rene Espina be placed in the watchlist of the Bureau of Immigration during pendency of proceedings.
Based on Ideal Plans’ general information sheet filed on April 2008, Espina was the chairman of the company while Gabriel was president. Kua, on the other hand, was executive vice-president and comptroller while Micaller was the assistant vice-president of Ideal Plans’ Planholder Services & Claims Department.
The Non-Traditional Securities Department of the SEC, which oversees the operations of pre-plan firms, has been receiving as early as June 2008 complaints from Ideal Plans customers for non-payment of their pension benefits.
There were also planholders who availed of their pension benefits but were only paid an amount equivalent to 25 percent of the maturity value of their plans.
An audit conducted by the SEC’s Enforcement and Prosecution Department revealed that Ideal Plans used the same names of a number of planholders with matured plans to facilitate withdrawals of millions of money from its trust fund.
Gabriel explained that the checks payable to her were issued merely to accommodate planholders which do not have bank deposits.
The names of planholders that were in the list of those that had been paid by Ideal Plans claimed that they have not yet received any payment from the company for their matured plans.
The SEC alleged that Ideal Plans and it officers were able to withdraw P1.37 million twice from the trust funds as duly reflected and confirmed by the certifications issued by the company’s trustee banks Metrobank and Banco De Oro.
Espina alleged that Ideal Plans, led by Gabriel, have “mismanaged the corporation by running it like a family corporation.”
Under Sec. 73 of the Securities Regulation Code, any person who violates any of the provisions of this Code or the rules and regulations promulgated by the Commission, shall upon conviction, suffer a fine of not less than P50,000 nor more than P5 million or imprisonment of not less than seven years nor more than 21 years or both in the discretion of the court.
“Hence, even if fines and penalties were imposed to and paid by Ideal Plans, it will not preclude the filing of appropriate cases against it and the aforementioned officers involved.”