Trader files raps against investment company

A local businessman filed charges of violation of the anti-dummy law against international financial and investment company Lehman Brothers before the Mandaluyong City Regional Trial Court (RTC).

Victor Villavicencio filed the case against Norman Macasaet, Carlos Manalac, Michael Rabonza, Edilberto Castaneda, Ana Marie Katigbak and several other unidentified suspects who allegedly conspired in behalf of Lehman Brothers and Philippine Investment One Inc.

Lawyer Allan Gepty, counsel of Villavicencio filed the anti-dummy charges against the investment firm.

In his complaint, Villavicencio claimed that in September 2004 to March 2005, the suspects conspired and simulated the existence of several corporations in order to make it appear that Philippine Investment Two Inc. is qualified to own properties in the Philippines.

However, upon examination of the records, it showed that Lehman Brothers, whose incorporators are foreigners, are the real and beneficial owners of the said corporation and as such, they are not qualified to own any property in the Philippines.

Villavicencio said the Constitution only allows Filipinos to own 100 percent of property in the country.

He said the accused incorporated several corporations that include Philippine Investment One (SPV-AMC) Inc., Philippine Investment Two (SPV-AMC) Inc., Argonan Real Estate Investment Inc., Duncan Holdings Inc., and Argosy Properties Inc. to provide corporate scheme to circumvent the legal requirements on the ownership of land in Mandaluyong City.

The businessman explained that it now becomes apparent and alarming that there might be several other foreigners or foreign corporations that are trying or may have acquired beneficial ownership of land through corporate layering only to acquire real properties in the country.  

The said case and other Lehman Brothers legal write-ups from around the world are posted at http://Lehman BrothersLegalCases.blogspot.com.

Its own website showed that Lehman Brothers is an innovator in global finance, serves the financial needs of corporations, governments and municipalities, institutional clients, and high net worth individuals worldwide.

It was founded in 1850 maintaining leadership positions in equity and fixed income sales, trading and research, investment banking, private investment management, asset management and private equity.

The firm is based in New York, with regional headquarters in London and Tokyo, and operates in a network of offices around the world.