12 charged in Calata stock case

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The Securities and Exchange Commission has charged at least 12 people with “anomalous” trading of shares of agricultural product distributor Calata Corp. and conspiring to “intentionally and unlawfully” raise share prices for their own profit.

In a 78-page complaint-affidavit dated November 26 and filed at the Department of Justice, the SEC accused the respondents, along with a number of John and Jane Does who have yet to be identified, of engaging in questionable trading of Calata shares from May 23 to June 8 this year through multiple brokers.

The complaint said these people used illegal schemes such as “painting the tape” and “hype and dump” for their own profit.

The 12 respondents are Michael Ilustre Angeles, Carmelo de la Cruz Bunag, Arnold Ryan Daquiz Dellosa, Richie Ramille Isip, Arnold Daquiz Martin, Gary Lincoln Calixto Taboso, Dennis Philippe Valencia Vistan, Zandro Jose Sigfrido Laki Zulueta, Juvy Ocampo, King Bryan Sulit, Alvin Morfe and Sheryl Sia.

The SEC said the case also included various John and Jane Does “who may have provided the funds for the trades” or “abetted in the commission of the crime” but whose identities and addresses have yet to be identified.

“Painting the tape” refers to the manipulative device of buying and selling shares to create the illusion of high trading activity and attract other traders.

“Aside from the high volume of the buy transactions, the frequency and timing support a finding of market manipulation through hype and dump, leading to an upward movement of the share price,” the SEC said.

The SEC cited the testimony of the salesmen of brokers that some respondents would call them many times a day, sometimes more than 20 times a day to post various buy orders with different prices. “Clearly this scheme falls under the definition of hype, of engaging in buying activity at increasingly higher prices for the purpose of raising share prices which is explicitly prohibited under the SRC (Securities Regulation Code),” it said.

“After achieving record peaks for the price of CAL shares, they started dumping their shares to the public by selling them at price levels above acquisition price,” the SEC added.

To maximize their dumping activity and dampen the downward movement of the price of CAL shares during this selling spree, the SEC said the respondents resorted to “painting the tape” and hype-buying through at least four brokers—Nieves Securities, HDI Securities, Venture Securities and Tower Securities. The SEC said this was “to deceive the public into thinking that the shares were being sold by different owners in due course, as opposed to the truth that they were being unloaded by an organized group which would have accelerated the fall of the price had the public become aware of this plot.”

The respondents were also accused of employing manipulative practices such as the creation of temporary funds to engage in other manipulative practices. The SEC said these manipulative devices “were clearly coordinated and intended to have a significant impact on the behavior of the volumes traded and prices of CAL shares to the public’s detriment.”

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  • upupperclassman

    Can the anomalous stock trade of Calata take place without the facilitation of a stock brokerage firm and insider? Why all investigations ended with small hapless goats? We have yet to witness a real investigation of stock manipulation with the real culprit!

  • rickysgreyes

    Remember BW? Wala pa nakukulong

  • http://pulse.yahoo.com/_OJWHBJLMWPTRUOZMN6JOMHLO2A Banana Na

    nangyayari yan sa ibang bansa ng asia, bibigyan nila ng money ang mga tao na kasabwat nito, at may mga tao sila binabayaran para mag-open ng account sa stock trading, tapos, they manipulate sa stock market depende sa firm na gusto nila e-manipulates….nahuhuli naman nila ang government nila at SEC nila ang mga tao involves nito….ewan ko lang sa pilipinas, kung makukulong nila ang mga suspects at stiff penalty fees at maibalik nila ang mga tao na naipit sa CALATA stock, dati, ko pa sinasabi na they are manipulates ang stock nila at ang PXP stocks…ewan ko lang kung maniwala sila, pera nila yan….buhay talaga…di pa nga sinasabi ng CALATA FIRM kung magkano ang kinikita nila basta na lang tumataas ang stock price nila, di ba sila naghinala kung bakit tumataas ng bigla…ibig sabihin, may manipulators na investors nila….

  • http://pulse.yahoo.com/_HIRIW4OWEIHTILXO4IPYMKLOHE eric

    WAT   A  JOKE….   SEC   NOTHING  WILL  HAPPEN…  IT WILL  JUST  LANGUISH  FOEVER  IN  COURT…………  STUPID     PHILLPINES…….  NOTHING  HAPPEN  AS   ALWAYS

  • http://profile.yahoo.com/276L22SZM5ZUQGV24IL4ZEF6UA Edward

    buti nga…sana makasuhan na at makulong at ibalik lahat ng perang kinita kasama na ang puhunan ng mga mokong na yan para ibalik sa mga investors na natalo o naipit sa trading bunga ng mga malpractices na ito..

    ang galing tlga ng pinoy khit may batas na hanap pa rin ng paraan para maka dinggoy o makalamang sa kapwa tao…

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