MANILA, Philippines - The National Bureau of Investigation (NBI) arrested yesterday four officers and directors of defunct brokerage firm HK Securities on charges of syndicated estafa.
Acting upon orders by the Department of Justice, the NBI arrested HK Securities president and principal shareholder Rodolfo V. Cruz, Cecilia F. Cruz, Primalee Cruz-Cordero, Abelardo R. Cordero yesterday morning at the Cruz residence in Quezon City. They are currently detained at the NBI main office in Manila.
DOJ senior state prosecutor Peter L. Ong was designated to actively prosecute the criminal cases filed against the accused.
In 2008, several complaints of syndicated estafa were filed with the Department of Justice by clients of HK Securities against the accused as well as other non-executive directors for numerous fraudulent transactions involving the complainants’ funds and securities.
The Philippine Stock Exchange (PSE) took over HK Securities’ operations upon an order from the Securities and Exchange Commission on Sept. 25, 2008 when the company failed to account and produce securities of its clients worth approximately 106 million. HK Securities previously undertook but failed to pay the short security position.
Prior to the takeover, the PSE Market Regulation Division (MRD) suspended HK Securities from its trading operations based on various violations of the securities laws uncovered during MRD’s audit of HK Securities.
The MRD subsequently issued an order expelling HK Securities from the PSE, among other sanctions imposed for the violations. HK Securities had appealed the sanctions.
Currently, the PSE is in the process of liquidating the trade-related assets of HK Securities and distributing the pro-rata allocation of the claimants.