MANILA, Philippines - The Securities and Exchange Commission (SEC) has filed with the Department of Justice charges against three more executives, including witness Namnama Pasetes, of the Legacy Group owned by embattled businessman Celso de los Angeles Jr.
Aside from Pasetes, Legacy’s chief finance officer, the SEC also included Arcatomy Guarin, president of another De los Angeles firm Legacy Card, and board member Eric Purugganan in the charges for violation of the provisions of the Securities Regulation Code (src) that prohibit the sale of securities without approval of the commission.
Namnama earlier testified at the Senate and exposed how the multi-billion Legacy fund was squandered by De los Angeles.
The commission said the respondents it named in its Feb. 26 complaint were based on the 2003 General Information Sheet (GIS) that Legacy Card filed for the year with the commission.
Among the respondents were De los Angeles, former chairman and chief executive officer and director of Legacy, his son Martin Nicolo, brother Victorino, and mother Purita; the board of directors of Legacy Card; Norman Tiongson, corporate secretary; Carolina Hinola, Christine Antenor Cruz, SVP-finance officers; Rita Maniacup, AVP-finance officer; Basilio Ponciano Carpio, senior manager; Roy Hilario, director and authorized representative; and several John and Jane Does.
Records at the Corporate Registration and Monitoring Department (CRMD) showed that Legacy Card filed another GIS in 2008 indicating that there had been a change in the membership of its board of directors.
The 2008 GIS shows De los Angeles as Legacy Card’s incorporator; Guarin as president; Pasetes, treasurer; Purruganan, member; lawyer Christine Limpin, corporate secretary; Hinola and Hilario, members.
“The modus operandi of Legacy Plans Consolidated, Inc. is to employ and use its sales agents to offer and sell investment products to the public.
“Taken as a whole, it appears that respondent Legacy Card conspired with and aided Legacy Consolidated Plans, Inc. in its grand scheme to defraud the investing public,” the SEC said.
“Respondent Legacy Card, in issuing post-dated checks to said investors, served as the final piece of the puzzle to complete the fraudulent activities of Legacy Consolidated Plans, Inc. In other words, respondent Legacy Card perpetrated the fraudulent activities of Legacy Consolidated Plans, Inc., that is selling of unregistered securities, to the damage and prejudice of the complaints-investors,” the SEC said.
In its complaint, SEC alleged that LCPI offered and sold various investment schemes as “shares, participation or interest in a corporation or in a commercial enterprise or profit-making venture.”
Such investment contracts, according to SEC, are required under Section 8 of the src to be registered before being offered or sold to the general public, which Legacy failed to comply with.
The SEC said that Legacy committed fraud when they enticed the public to participate in these investment schemes with the assurance that they will earn huge profits in three years and that the investment would surely be paid because they are issued postdated checks in equal monthly or quarterly installments.
But instead of fulfilling its promise, Legacy closed its offices and filed for dissolution before the commission.
Under Section 73, violations of the src are punishable by a fine of between P50,000 to P5 million or imprisonment of seven years to 21 years, while the violation of the Corporation Code is punishable with a fine ranging from P1,000 to P10,000 and imprisonment of 30 days to five years.