The Makati Regional Trial Court (RTC) has found a stockbroker guilty for violating the country's securities law, the first conviction under the 12-year old Securities Regulation Code (SRC) for Asia's oldest bourse.
In a decision, Judge Selma Palacio Alaras of RTC Branch 32 found Francisco O. Borromeo, former president of the defunct Asian Capital Equities Inc (ACEI), guilty of seven violations of the SRC. The court ordered him to pay P2.1 million.
The ruling was issued following Borromeo’s withdrawal of his not guilty plea and his voluntary entry of pleas of guilty on all seven charges. “In the course of the presentation of evidence against the accused, Mr. Borromeo reconsidered his not guilty plea and entered a plea of guilty,” said Department of Justice senior state prosecutor Peter Ong.
The landmark cases against Borromeo were filed on January 2005 on account of the unlawful and felonious acts he committed to defraud his clients, including the sale of his client’s shares without consent, the use of fictitious and dummy accounts in buying transactions, and failure to deliver the payment proceeds from the sale of the client’s shares.
Hans B. Sicat, Philippine Stock Exchange president and chief executive, said the decision is part of the bourse's good governance efforts.
“I understand that this is the first criminal conviction under the Securities Regulation Code which is one of the reasons why the PSE has been following this case closely. The outcome of this case shows that white collar crimes are punished in this country,” Sicat said.
“We thank all the hard work of the Securities and Exchange Commission and the Department of Justice in helping ensure that justice is served to Mr. Borromeo. This should help give more confidence to the growing investing public,” Sicat said.
Borromeo was arraigned on August 14, 2007 where he entered not guilty pleas to all the charges filed against him. In May 2007, the PSE sought the help of the public in tracking down Borromeo, who went in hiding after several arrest warrants were issued against him.
ACEI was closed in 2003 and its assets, including its trading right, were liquidated in 2008 to settle its liabilities to clients.
source: interaksyon.com
