CA upholds charges vs Dante Tan, 7 others in BW scandal

MANILA, Philippines - The Court of Appeals has reversed a lower court's ruling dismissing the criminal cases filed against businessman Dante Tan and seven others in connection with the insider trading and stocks manipulation at the Best World Resources Corp. Reversed was 2007 ruling by the Pasig City Regional Trial Court dismissing the cases filed by the government against Tan, Federico Galang, Eduardo Lim Jr., Hermogenes Laddaran, Raul de Castro, Emmanuel Edward Co, Mario Juan and Jimmy Juan. Four counts of criminal cases were filed against the seven for violation of Section 26 and 27 of the Revised Securities Act (RSA). In its 14-page ruling, the CA’s Second Division held that Pasig RTC Branch 268 Presiding Judge Amelia Manalastas committed grave abuse of discretion in issuing the said orders. It also dismissed the contention of the respondents that the charges had been extinguished when the RSA was repealed by the Securities Regulation Code (SRC). The CA agreed with the government that there is no conflict between RSA and the SRC considering that Sections 26 and 27 of the RSA, under which the respondents were indicted, were re-enacted in Sections 24 and 26 of the SRC. It said the SRC did not modify the elements of the offenses relative to the manipulation of security prices via “wash sales," “matched order," “marking the close," or abuse of “equity trading facility." “The pertinent provisions in the old law were reenacted in the provisions of the new law. Precisely, the title in the original and amended criminal informations filed against the private respondents specifically mentioned the applicable provisions of both the RSA and the SRC," the ruling, penned by Associate Justice Jose Catral-Mendoza, said. Concurring with the ruling were Associate Justices Portia Aliño-Hormachuelos and Ramon Bato. Tan, former president of BWRC, remains at large after reportedly fleeing to Australia when the scandal broke out. Based on the records, four separate criminal informations for violations of the provisions of the RSA were filed against Tan and his co-accused on March 2002 before the Pasig RTC. Four years later, Tan filed a motion to quash on the ground that the RSA had already been repealed with the passage of the SRC. The lower court granted Tan’s motion on August 15, 2007. The other accused subsequently sought the dismissal of the complaints against them considering that they were charged with the same offenses as those filed against Tan. On November 21, 2007, the Pasig RTC granted the accused motion, prompting the government to elevate the case before the CA. The BWRC scandal broke out after the Special Operations Group of the Securities and Exchange Commission (SEC) showed that the trading price of the shares of BWRC experienced a phenomenal growth during the period from October 1998 to October 1999, from a mere P0.80 per share at the start of the year 1999 to an astounding quoted price of P145. - GMANews.TV