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First stock broker found guilty of securities fraud fined P2M


MANILA, Philippines — The president of a stock brokerage house was fined P2.1 million by a Makati regional trial court after he was found guilty of defrauding his clients in violation of the Securities Regulation Code (SRC), the first conviction secured by the government almost 13 years after the law was enacted.

The Department of Justice relayed to reporters the case of Francisco Borromeo, president of Asian Capital Equity Inc., (ACEI), who was found guilty on March 19 by branch 62 of the Regional Trial Court of Makati City of seven counts of violation of the SRC, mostly involving fraudulent acts he committed between August 1993 and November 2003.

Borromeo had been charged with violations of the Republic Act. No. 8799 in seven information filed by the DOJ’s National Prosecution Office and the Enforcement and Prosecution Division of the Securities and Exchange Commission.

He was charged of five counts of fraudulent transactions from 2000 to 2003 for selling and trading the shares of his clients without their knowledge; using a fictitious and dummy account in the selling of securities, all to the prejudice of his clients and the investing public.

Borromeo was also charged with one count of unlawfully preparing, using and maintaining two sets of books—one that contains the actual database of ACEI’s negative position and another that contains the altered database to comply with the audit requirement of the Philippine Stock Exchange and SEC.

Borromeo pleaded not guilty on all seven pieces of information against him in 2007.

But last March 19, he expressed his desire to withdraw his not guilty plea and instead to plead guilty.

State Prosecutor Peter Ong did not object and Borromeo was arraigned anew this time pleading guilty to all seven information.

In a four-page decision by Presiding Judge Selma Palacio Alaras, the trial court then found Borromeo guilty beyond reasonable doubt of the crime of violation of the SRC. He was sentenced to pay the fine of P300,000 for each count or a total of P2.1 million.

“In the event of failure to pay the fine, he is ordered to suffer a subsidiary imprisonment corresponding to the fine adjudged,” the court said.

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Tags: Asian Capital Equity Inc. , courts , crime , Francisco Borromeo , fraud , law and justice , News , Securities Regulation Code , stock trading , trials and litigation


    IS this Francisco Borromeo a Ph national or a foreigner. I little remember of a similar name that was urging me to open a brokerage account with its computerized trading some years ago. He introduced himself as a certain Borromeo from USA.

    • red dragon

      thats him,,,,,,,,,,,,, he is a born thief and scammer….. he is now in cebu using alias carlo borromeo .

      • UrHONOR

        IF he’s indeed the same scheming guy, then he should be locked up after compensating those whom he has defrauded. WA-AY BATASAN!

      • red dragon

        thats how he got me in usa,,,,,,,, he bribed the judge, sec, pse . lawyers………. he is on bloomberg tv now. email me.hopless pinas,,, rich people can buy justice here

      • red dragon

        he tricked me giving low commission and on line trading……… thats what his trick…. he is now a chef in cebu

      • UrHONOR

        HOW? Send me your addy—thurone@hotmail.com. You must have been a victim of churning or excessive in and out round-trips. It really hinges on the agreement you initially agreed on. Otherwise, prudence must always prevail in a broker-client relationship.

  • Albert Einstien

    PLEA agreement AFTER 5 years of PIERCE court TRIAL & all of a sudden court & the state ALLOWED a re-pleading…..i thought RE-PLEADING is done before trials or presentation of evidence……..if this kind of legal maneuver & apparent BENEVOLENCE is ALLOWED in RP courts & by DOJ then NO WONDER white collar crimes will never be considered crimes at all…VICTIMS & the PUBLIC are losers & will just cry with tears of blood….is this crime not fall under the ECONOMIC SABOTAGE ambit….this will open the FLOODGATES in FRAUDULENT TRANSACTIONS imbued with public interest.. ….will destroy even the economy .. ..SOMETHING WENT WRONG….DOJ & SC must review…why the state did not fight for the PEOPLE…since he is guilty as charged with violation of SRC… based on the news as reported.. i think STATE can STILL file INDEPENDENT cases of falsification of documents for maintaining 2 sets of books & using a fictitious and dummy accounts in the selling of securities .under RPC ( mala in se ) ( since violations under Securities Code is a special law ( mala prohibita ) where he was sentenced merely to a FINE after re-pleading.. .also perjury cases since from 2007 to 2012 he kept on denying the allegations in court …..unless the STATE signed a compromise PLEA agreement REVIEWED by the chief executive or chief doj……….TSK TSK…amoy daing ….lol

    • red dragon

      i lost 100 milon stolen by this thief from cebu,,,,,,,,, they bribed the doj, sec and pse……………….

      • Albert Einstien

        instead of brokers you hire accountants & researchers…to analyze the Financial Statements & gather info on a target investment..you can trade personally…much much better..brokers are target of manipulation by big players….that’s why herd people lose..

  • http://profile.yahoo.com/SRPSEPOKCEYJPXM73RSBL22HNQ P Abi

    white color crimes are unpunished in the philippines..

  • walang pakundangan

    2.1 million eh baka billion ang niloko niya that amount is nuts …mani !

  • dodong1

    walang jail time?? IT’S ONLY IN THE PHILIPPINES..

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