SEC asked to stop its own people from pursuing BW investigation

Businessman Jimmy Juan, one of several individuals sent notices by the Securities and Exchange Commission (SEC) in connection with its investigation of amusement firm Best World Resources Corp. (BW), has asked the commission en banc to issue a temporary restraining order (TRO) and a writ of preliminary injunction against the corporate watchdog's prosecution and enforcement department (PED).

The issuance of a TRO and subsequently, a writ of preliminary injunction, will prevent the SEC's PED from proceeding with its investigation of charges of insider trading and stock manipulation of BW. Ruben Ladia is also being sued in his capacity as acting director of the PED.

In a petition filed with the commission en banc, Juan said the PED should be stopped from further proceeding with PED Case No. 20-2360 which relates to the formal investigation of the PED on the unusual price movement of the shares of stock of BW last year.

Juan said the PED violated his right to due process and prematurely endorsed the matter and recommended to the Department of Justice, the filing of criminal charges against the former pending his petition.

Juan said PED's formal investigation is without due process because it is based on the PSE's compliance and surveillance group (CSG) report on BW which is still being looked into currently by the stock exchange's business conduct and ethics committee (BCEC).

"It effectively deprives the remedy of seeking a reconsideration of the BCEC's action before they are dragged into a full blown public investigation. Also, there is no showing whether the report being used by PED was already acted upon by the BCEC before it was submitted to the PED. Thus, the formal investigation by the PED at this time, violates the right to due process on the parties adversely affected by the report," Juan said.

Juan had earlier asked the SEC to be furnished an official copy of the CSG's BW report, information as to the specific acts or transactions of Juan which allegedly violated certain provisions of the Revised Securities Act; full opportunity to deny and/or explain each particular act or transaction, and suspension of the investigation until resolution of two cases filed in the regional trial court and Court of Appeals, specifically calling for the suspension of BW investigation.

Juan said the PED ignored all of these requests, and thus, committed grave abuse of discretion amounting to lack or excess of jurisdiction in denying his right to due process. He said the PED should be compelled to comply with the rules of practice and procedure before the PED adopted by the Commission en banc on April 1990.

Juan, BW and presidential friend businessmen Dante Tan earlier this month, asked the SEC to put off the investigation of BW until such time the PSE's BCEC has completed its own report or evaluation of the report submitted by CSG.

Tan and Juan, were tagged as among several individuals and broker firms named in the CSG report as principal participants in the alleged insider trading and stock manipulation of BW.