THE MERE FACT that the Securities and Exchange Commission filed criminal cases of insider trading and stock manipulation against Villar Land Holdings Corp. before the Department of Justice (DOJ) in itself manifests sufficient probable cause under existing legal precedents.
This was declared by DOJ Senior Deputy State Prosecutor Peter Ong in denying the defense team’s bid to remand or return the case back to SEC, but wittingly hinted at considering the attorneys’ motions as the counter affidavit.
One noted that the SEC’s decision to file the criminal cases itself constitutes a sufficient finding of probable cause under existing legal precedents, reported Bilyonaryo.
FAMILY DISCLOSURE
The case stemmed from a January complaint by the SEC alleging that Villar Land (formerly Golden MV Holdings Inc.) and its officers engaged in market manipulation and misleading disclosures.
The SEC claimed that the company distorted its share prices by releasing a premature 2024 financial statement reporting P1.33 trillion in assets. After an external audit, the figure was adjusted downward to P35.7 billion, a reduction of 97 percent.
Respondents in the case include former Senate President Manny Villar in his capacity as Villar Land chairman, his wife Cynthia and their children — Senators Mark and Camille, and Paolo. The SEC has also accused Camille of insider trading related to a 2017 transaction.
NO MORE PROXIES
The prosecution panel granted the respondents an extension until April 20 to file their counter-affidavits. Ong directed the Villars and other officers to personally appear on that date to swear to their submissions.
Among the individual respondents, only former independent director Garth Castañeda appeared in person on Monday to file his counter-affidavit.
In a session Monday at DoJ, a DoJ panel of prosecutors gave the respondents until April 20 to file their counter-affidavits on the complaint filed by the SEC.
The investigation involves alleged violations of Sections 24.1(b), 26.3, and 27.1 of Republic Act No. 8799, or the Securities Regulation Code (SRC), which cover manipulative practices and insider trading.
OTHER RESPONDENTS
Villar Land independent director Respondent Garth Castañeda was the only party to submit a counter-affidavit during the proceedings. Villar Land director Cynthia Javarez filed an Omnibus Motion seeking to suspend the preliminary investigation, recall the subpoenas, and return the case to the SEC.
The defense argued in the motion that the SEC failed to make a finding of probable cause required under Section 53.1 of the SRC.
In reply, Ong said: “I said that if that is your motion, we will take that as a motion to dismiss… [and] that will serve as your counter-affidavit. So, you won’t have to file [anything else]… then they suddenly said they would file [counter-affidavits] after all.”
NO LENTEN BREAK
The prosecutors granted the extension, citing the technical complexity of the case and the upcoming Lenten break.
“We gave them enough time to prepare because the annexes from the SEC are quite thick. It’s not just one case; I think there are four. It’s very technical,” Ong explained.
Despite the motion to suspend the proceedings, Ong said the panel will continue with the investigation while considering the respondents’ arguments.
The panel also directed all respondents to personally appear before DoJ prosecutors to affirm their affidavits.
The SEC earlier flagged Villar Land Holdings Corp. for allegedly reporting P1.33 trillion in assets and P999.72 billion in net income in its March 2024 disclosure, a sharp jump from P1.46 billion the previous year.
PROPERTY VALUATION
Audited financial statements later showed assets of only P35.7 billion after about P1.3 trillion linked to the Villar City valuation was removed. The corporate regulator subsequently fined the company and its officials P12 million for late filing.
The DoJ earlier issued subpoenas to Villar Land Holdings Corp., its related entities, and key officers. Company officials, who initially said they welcomed the opportunity to respond to the allegations, snubbed Monday’s hearing and were represented only by legal counsel, along with lawyers for related entities.
“I am requesting them to come here. They should swear before us so that we won’t have any doubts about who they swore before,” Ong said, noting the need for procedural transparency.
OMNIBUS MOTION
The SEC has been ordered to file its opposition to the Omnibus Motion before the next hearing on April 20. The panel will then decide on a date for a clarification hearing.
Coincidentally, Villar who for past years was reported by Forbes as the top millionaire of the Philippines, now tails several steps behind Ricky Razon of the International Container Terminal Services Inc. and several other big companies, here and abroad.
Perhaps this was due to the filing by the SEC of criminal charges against Villar Land for misrepresentation and market manipulation.