SEC files criminal complaint vs Abra Mining

MANILA, Philippines — The Securities and Exchange Commission (SEC) has filed a criminal complaint against Abra Mining & Industrial Corp., its directors, officers, transfer agent and certain stockholders for alleged unauthorized trading of shares over a five-year period.

The SEC filed a complaint-affidavit before the Department of Justice (DOJ) on May 3, charging the respondents with 441 counts of violations of the Securities Regulation Code (SRC) and the Revised Corporation Code (RCC).

The SEC also asked the DOJ to institute civil and criminal forfeiture, including the accessory penalty of asset preservation, and other appropriate action against the respondents under the Anti-Money Laundering Act of 2001, as amended.

The SEC included as respondents in the criminal complaint Abra Mining’s president, corporate secretary and certain directors.

It also named as respondents the company’s transfer agent Asian Transfer & Registry Corp. and its officers, as well as certain stockholders who were charged for collusion.

In the complaint, the SEC said respondents Abra Mining and Asian Transfer, through their respective board of directors, and the stockholders were “acting in concert, engaged in the offering and selling of unregistered Abra Mining shares in violation of Sections 8 and 26 of the SRC in connection with Sections 61, 62 and 63 of the (RCC) of the Philippines to the prejudice of the investing public.”

According to the SEC, the criminal complaint stemmed from discrepancies in the number of Abra Mining shares registered with the commission for public offering, those listed in the Philippine Stock Exchange (PSE) and those lodged with Philippine Depositary and Trust Corp.

In its investigation, the SEC Markets and Securities Regulation Department (MSRD) found Abra Mining, its directors, officers, transfer agent and certain stockholders engaged in the unauthorized trading of shares from 2015 to 2019.

In a decision dated April 8, the MSRD imposed fines totaling more than P560 million on the respondents and revoked the registration statement and permit to sell securities of Abra Mining.

It also disqualified the officers and directors of Abra Mining and Asian Transfer from performing similar functions in SEC-supervised financial intermediaries and issuers of securities.

Following the SEC decision, the PSE earlier said it is left with no alternative except to maintain the trading suspension on Abra Mining shares and proceed with the initiation of delisting proceedings pursuant to its involuntary delisting rules.