DOJ starts new probe into BW shares scandal

The Department of Justice (DOJ) has moved to revive dismissed charges against Best World (BW) Resources stemming from alleged stock price manipulation and insider trading in 1999.

Justice Secretary Hernando Perez told reporters that Assistant Chief State Prosecutor Nilo Mariano, head of the probe panel, is just awaiting additional evidence from the Securities and Exchange Commission (SEC) needed for the refiling of the complaints against BW headed by Dante Tan, a close ally of ousted President Joseph Estrada.

"The reinvestigation has already started," Perez said, referring to the charges of wash sales, insider trading, matched orders, abuse of the use of private placements, equity trade and done-through-transactions which were all previously junked due to lack of evidence.

Mariano, along with members of the original panel that filed the price manipulation charges before the Pasig City Court, met last Friday afternoon to look into other violations of the Revised Securities Act by BW.

Perez said Tan’s violations were more serious than what had been filed. "It was a grand-scale manipulation that brought down the stock market. It was more serious than mere violation of the Securities Code. The downfall of the stock market could have resulted in the downfall of the economy," Perez stressed.

The DOJ, under then Justice Secretary Artemio Tuquero, filed the price manipulation charges last December at the sala of Pasig Regional Trial Court Judge Briccio Ygaña.

The charges, which carry a maximum prison term of 21 years for each count, were actually meant to lessen the impact of the testimony of former Securities and Exchange Commission chairman Perfecto Yasay Jr. that was included in the impeachment complaint against Estrada, specifically the article on betrayal of public trust.

Tan’s co-accused were BW majority stockholder Jimmy Juan and Belson Securities Inc.’s Eduardo Lim Jr., who were sued for non-disclosure of substantial ownership of BW shares and for alleged violation of the broker-director rule.

Rizal Provincial Prosecutor Gregorio Arizala, a member of the panel, earlier said these brokers who figured in the October 1999 stock exchange scandal could still be haled to court if the SEC could submit stronger evidence.

"There’s no double jeopardy yet. If the SEC conducts an investigation again and submits new evidence, and if we find it to be meritorious, then we can still file the case in court," Perez noted.

Chief State Prosecutor Jovencito Zuño said the information filed in the Pasig RTC can be amended and have the other cases against Tan, Juan and Lim reinvestigated by the justice department. — Delon Porcalla