Calata found guilty of market manipulation, says SEC
MANILA, Philippines — Former publicly listed company Calata Corp. chair Joseph Calata and other officials were found guilty of “misleading and exaggerated” claims over the supposed Mactan Leisure City project, which inflated the firm’s share price exponentially in 2016 following a buying spree.
This is a form of market manipulation, which is a violation of the Securities Regulation Code.
In a decision promulgated on May 28, Branch 148 of the Makati City Regional Trial Court found Calata, chair president, and CEO of Calata Corp, guilty beyond reasonable doubt of two counts of violation of Section 24(d) of Republic Act No. 8799, or the Securities Regulation Code.
READ: SEC upholds removal of Calata from PSE roster
Calata Corp’s corporate secretary, compliance officer, and corporate information officer Jose Marie Fabella was likewise found guilty of two counts of violation of the same law, the Securities and Exchange Commission (SEC) said in a statement on Tuesday.
Calata and corporate information Fabella were ordered to pay fines of P4 million each. Otherwise, they will be given jail time “should they fail to pay the fines on account of insolvency,” the SEC said in the same statement.
“Fabella, with the consent and authority of Calata, was found to have made misleading statements in the company’s disclosures to the PSE about its partnership with Sino-America Gaming and Macau Resources Group Limited for the development of a $1.4 billion integrated resort and casino project called Mactan Leisure City,” the SEC added.
