SEC Chairman Lilia Bautista said the commission has also referred the complaint to the National Bureau of Investigation (NBI).
The Wincorp. officials named in the SEC’s complaint-affidavit are: John Anthony Espiritu, Manuel Tan Kian See, Antonio Ong, Henry Cualoping, Vicente Cualoping, Simeo Cua, Mariza Santos-Tan, Alfonso Reyno, Manuel Estrella, Nemesio Briones, Francis Orena.
Bautista told reporters last Monday that the report prepared by SEC’s prosecution and enforcement department (PED) will also be used by the DOJ in the investigation of the case against the officials.
Emilio Aquino, officer-in-charge of the PED, said the criminal complaint against the officials came on the heels of PED’s discovery of Wincorp’s illegal issuance of confirmation advice (CA).
Aquino said such issuance violates section 56 of the RSA and that the CA issued in exchange for investors’ investments constitutes "the nature of an investment contract."
Aquino said that under the investment contract theory, Wincorp officials can be held accountable for their failure to register the CAs issued by them.
Meanwhile, SEC’s money market operations department (MMOD) is poised to impose fines and penalties on Wincorp officials.
It will be recalled that the SEC issued a cease and desist order (CDO) against Wincorp last May, preventing Wincorp from dealing in any business transaction concerning the issuance of any confirmation advice, promissory notes of commercial papers.
The cease and desist order was issued after the SEC’s brokers and exchanges department found Wincorp guilty of violating the commercial paper rules.
Wincorp closed down early this year after undergoing a liquidity crisis with its creditline to Westmont-UOB cut off.
Its condition worsened when several groups identified with former Finance Secretary Edgardo Espiritu failed to repay the P5.5 billion they had loaned from Wincorp.