MANILA, Philippines - The criminal complaint filed by the Securities and Exchange Commission (SEC) against Celso de los Angeles, head of the troubled Legacy Group of Companies, and 13 other individuals will be handled by a special panel of the Department of Justice (DOJ) tasked to investigate cases against pre-need firms.
Task Force Legacy of the DOJ, led by Provincial Prosecutor Emmanuel Velasco, is expected to summon De los Angeles to a preliminary investigation that would start early next month.
The SEC complaint was initially assigned to the DOJ task force handling cases on estafa and violations of the Securities Act but was forwarded to the Task Force Legacy in line with a department order issued by Justice Secretary Raul Gonzalez.
De los Angeles and others were charged by the SEC last Friday with fraud and violation several provisions of Republic Act 8799 or the Securities Regulation Code and the Corporation Code of the Philippines.
In the 21-page SEC complaint obtained by reporters only yesterday, De los Angeles and the Legacy officers were accused specifically of violating sections 8, 16 and 26 of RA 8799 and section 45 of the Corporation Code for selling unregistered securities and engaging in misrepresentation by assuring investors that the principal amount of their investments is guaranteed.
Section 16 of the src provides that no person shall offer to the public any pre-need plan without the approval of the SEC, while Section 26 of the law prohibits anyone from employing any device or scheme to defraud.
The complaint stemmed from an investigation into several complaints received by the SEC against the Legacy Group.
In an interview with reporters at the DOJ, Velasco said they would subpoena De los Angeles and the 13 other respondents in the criminal complaint filed by a group of investors against Legacy for its alleged failure to deliver their promised return of investments amounting to over P187 million.
Last week, twelve subscribers of different companies under the Legacy Group led by Francisco Obsenares filed with the DOJ a joint complaint for syndicated estafa against De los Angeles, his wife Ma. Concepcion, son Nicolo Martin, mother Purita and brother Victorino; and nine other officers of their companies.
If convicted, respondents will face imprisonment of not more than 21 years, or fined P50,000 to P5 million. – Edu Punay, Jess Diaz