SEC ready to close BW Resources case

Nearly two and a half years later, the Securities and Exchange Commission (SEC) is ready to close the controversial case involving BW Resources Corp. (now Fairmont Holdings).

In a letter to the Philippine Stock Exchange (PSE), SEC chairperson Lilia Bautista said the corporate regulator would leave it up to the Department of Justice to take on the criminal cases filed with it.

On the part of the SEC, she said the administrative prosecution of the brokers identified in the agency’s investigative reports – which were made the basis in the DOJ cases – has practically been concluded.

"Those charged administratively have decided to settle their cases without admission of guilt to put an end to this case which has damaged the reputation of the Philippine capital market, and the Exchange and its players in particular," Bautista said.

Under the Securities Regulation Code, parties charged in trading anomalies can offer a settlement of the case at any time during the probe. The SEC may then consider such offer based on "timing, the nature of the investigation or proceedings, and the public interest."

Early last month, the SEC dropped the administrative charges against four brokers and an individual involved in the price rigging case in BW after they offered a cash settlement.

Among those charged but settled their cases include A.T. de Castro Securities Corp., PNB Securities, two small but unidentified brokers, and businessman Ramon Lee.

The SEC had earlier recommended administrative sanctions against a number of brokerage firms and individuals allegedly involved in the BW case, and were assessed fines ranging from P10,000 to P1 million, including the threat of revoking their licenses.

Due to the degree of their participation, the brokers were slapped different penalties. A.T. de Castro offered to settle the case for P1 million, to be paid on a staggered basis; PNB Securities settled for P100,000; while Lee opted to pay P112,500.

Bautista said since then, a total of 75 brokers have since opted for the settlement offers, paying an aggregate amount of around P12 million. – Conrado Diaz Jr.