SEC sues Calata Corp. for false statements that boosted its share prices
The Securities and Exchange Commission (SEC) filed a criminal complaint before the Department of Justice (DoJ) on Wednesday against agribusiness firm Calata Corp. for making “false and misleading statements” about the green-lighting of the bungled Mactan Leisure City project.
SEC Enforcement and Investor Protection Director Jose Aquino filed the complaint against the company’s executives, including Joseph Calata, president; Benison Paul De Torres, chief financial officer; and board directors Conrado Zablan, Johnny Uy, Halmond Parker Ong, and Edmund Solilapsi.
Aquino alleged that the officials violated Section 24 of the Securities Regulation Code (Republic Act 8799) for making false and misleading pronouncements that helped the company boost its share prices at the stock exchange.
SEC filed the complaint after the Philippine Stock Exchange (PSE) delisted the firm for violating PSE disclosure rules.
Aquino said the Philippine Amusement and Gaming Corp. (Pagcor) had already turned down Calata’s licensing application the gaming regulator was already operating a casino at Waterfront Hotel and Casino in Mactan, Cebu.
“It is unlawful for any person to make false or misleading statement with respect to any material fact which he knew or had reasonable ground to believe was so false or misleading for the purpose of inducing the purchase or sale of any security listed or traded at the exchange,” Aquino said, citing Section 24 of the Securities and Regulations Code.
The SEC official said Calata had publicly declared that its gaming license for Mactan Leisure City, a casino and entertainment complex in Cebu, was set to be out by the end of the year and would commence operation in 2020.
He said the Calata’s disclosure resulted in a 28.16 percent increase in the price of the firm’s shares and an increase in the volume in the shares traded.
Aquino said that the respondents, if convicted, could face a fine of P50,000 to P5 million or imprisonment of seven to 21 years. /atm
