SEC files criminal raps vs Abra Mining over alleged fraud

MANILA, Philippines — The Securities and Exchange Commission (SEC) has filed criminal charges against Abra Mining and Industrial Corp. (AR) over alleged unauthorized and fraudulent trading of shares from 2015 to 2019.

On Sunday, the SEC announced that it had pressed charges against individuals from the firm, citing 441 counts of violation of Republic Act (RA) No. 8799, also known as the Securities and Regulation Code, and R.A. 11232, the Revised Corporation Code.

The SEC also asked the Department of Justice (DOJ) to implement a civil and criminal forfeiture against the respondents from the firm under the Anti-Money Laundering Act of 2001.

In a separate press release by the DOJ on Tuesday, the agency said that the case stemmed from the discrepancies in the number of the firm’s shares registered before the SEC for public offering.

The shares in question are also listed on the Philippine Stock Exchange and held by the Philippine Depository and Trust Corporation, according to the DOJ. 

Justice Secretary Jesus Crispin Remulla asked the National Prosecution Service to “exhaust all resources” mandated by the law to make the officials and certain stockholders accountable. 

“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 was quoted as saying in a press release.

“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,” he added.