Criminal raps filed vs officers of 2 Legacy affiliates
Feb. 26, 2009
MANILA, Philippines – The Securities and Exchange Commission (SEC) has filed criminal complaints against officers of two companies affiliated with the collapsed Legacy Consolidated Plans, Inc.
In two separate complaints filed before the Justice Department, SEC accused Legacy of violating the provision of the Securities Regulation Code (SRC) that prohibits the sale of securities without prior approval of the Commission.
SEC-Compliance and Enforcement Department said officers of Legacy Card, Inc. (formerly known as Legacy Group, Inc.) and One Realty Corporation violated Sections 8 and 26 of the SRC as well as Section 45 of the Corporation Code.
Named respondents in the complaints were Celso Delos Angeles Jr., former chairman and chief executive officer and director of Legacy; Martin Nicolo Delos Angeles, Victorino Delos Angeles, Purita Delos Angeles, board of directors of Legacy Card; Norman Tiongson, corporate secretary; Corilina Hinola, Christine Antenor Cruz, SVP-finance officers; Rita Maniacup, AVP-finance officer; Basilio Ponciano Carpio, senior manager; Roy Hilario, director and authorized representative; and several John and Jane Does.
On the other hand, aside from Celso Delos Angeles, other officers of One Realty Corporation charged were Ma. Concepcion Delos Angeles, Purita Delos Angeles, Christine Limpin, Madeline Cobarrubias, all board of directors.
The SEC claimed that the accused actively participated in the fraudulent activities of Legacy Consolidated Plans that had previously been charged before the DOJ by SEC.
In its complaint, SEC alleged that Legacy Consolidated Plans had offered and sold various unregistered investment schemes. The Commission said under Section 8 of the SRC, such schemes must be registered before being offered or sold to the general public.
The SEC said that Legacy committed fraud when they enticed the public to participate in these investment schemes with the assurance that they would earn huge profit in three years and then not fulfilling its promise when it closed its offices and filed for dissolution before the Commission.
SEC said to evade its obligation to pay back its investors, Legacy used its affiliates such as the respondents Legacy Card and One Realty Corporation as business conduits for the purpose of issuing and assuming liability for payment of the post-dated checks given to the complainants-investors.
Under Section 73, violations of the SRC are punishable by a fine of between P50,000 to P5 million or imprisonment of seven years to 21 years while the violation of the Corporation Code is punishable with a fine of between P1,000 to P10,000 and imprisonment of 30 days to five years. – GMANews.TV
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