PSE lauds first conviction under Securities Regulation Code

THE Philippine Stock Exchange (PSE) hailed Tuesday the guilty verdict by a lower court against a stock broker for defrauding his clients.

The final ruling of Regional Trial Court of Makati City (RTC) against Francisco O. Borromeo on seven violations of Republic Act 8799 or the Securities Regulation Code was the first criminal conviction under this law, said PSE President and CEO Hans B. Sicat.

"I understand that this is the first criminal conviction under the Securities Regulation Code which is one of the reasons why the PSE has been following this case closely. The outcome of this case shows that white collar crimes are punished in this country," he said.

"We thank all the hard work of the Securities and Exchange Commission (SEC) and the Department of Justice (DOJ) in helping ensure that justice is served to Mr. Borromeo. This should help give more confidence to the growing investing public," he added.

Borromeo, former president of the defunct brokerage house Asian Capital Equities, Inc. (ACEI), was sentenced to pay a total amount of P2.1 million.

The verdict was issued by Judge Selma Palacio Alaras of RTC branch 32 on Tuesday following Borromeo's withdrawal of pleas of not guilty and his voluntary entry of pleas of guilty on all seven charges.

The cases against Borromeo were filed on January 2005 on the account of the unlawful and felonious acts he committed in order to defraud his clients, including, among others, the sale of his client’s shares without his client’s consent, the use of fictitious and dummy accounts in buying transactions and his failure to deliver the payment proceeds from the sale of his client’s shares.

"In the course of the presentation of evidence against the accused, Mr. Borromeo reconsidered his not guilty plea and entered a plea of guilty," DOJ Senior State Prosecutor Peter Ong said.

The businessman was arraigned on August 14, 2007 where he entered not guilty pleas to all the charges filed against him. In May 2007, the PSE sought the help of the public in tracking down Borromeo who went in hiding after several arrest warrants were issued against him.

ACEI was closed in 2003 and its assets, including its trading right, were liquidated in 2008 to settle its liabilities to clients. (SDR/Sunnex)