Court issues writ of attachment on assets of GK Goh Securities

A civil case against GK Goh Securities Philippines, Inc., and Lim Kim Siah in the Regional Trial Court (RTC), Branch 134 of Makati City for a sum of money with prayer for the issuance of a writ of preliminary attachment was filed by Hilario P. Soriano, president of Soriano Holdings Corp.

The case allegedly arose from an agreement whereby Lim Kim Siah, country manager of GK Goh Securities (defendants) offered to Soriano (plaintiff), a margin trading facility for an annual interest of 18 percent provided that the latter would secure it with a dollar cash collateral equivalent to 100 percent of the margin facility he would use. The amount of $100,000 was provided by Soriano as collateral, and later on increased by an additional amount of $35,000 all deposited in the name of GK Goh Securities, Inc.

Soriano said that later on he learned that under the Securities Regulation Code, the grant of a margin facility secured by a collateral, other than securities, is prohibited. In fact, putting up a dollar collateral is against the law and as such, the defendants could not legally require it.

Up to the time that GK Goh Securities ceased operations in November 2002, it allegedly has not furnished Soriano with a detailed and complete accounting of the transactions pertaining to the margin trading facility, specifically the details of the transactions regarding the application of his dollar collateral.

The court has, therefore, issued a preliminary writ of attachment on the properties of the defendants. A notice of levy on attachments to four condominium units in Ayala Avenue was given to the Register of Deeds of Makati City to this effect.