On August 12, the Department of Justice (DOJ) found sufficient evidence to indict Abra Mining & Industrial Corp. (AR), its directors and officers, stock transfer agent Asian Transfer & Registry Corp., and several stockholders for flooding the market with over 186 billion unauthorized shares. The case stems from a Securities and Exchange Commission (SEC) complaint filed in May 2024, which alleged fraudulent trading from 2015–2019, Insider PH reports.
An SEC probe later found that as of February 2021, a total of 258.96 billion AR shares were lodged with the Philippine Depository and Trust Corp. (PDTC), which is far above the company’s 72.95 billion authorized shares and 95 billion registered shares. Abra Mining itself had reported 99.29 billion issued and 199.29 bill
ion outstanding shares, revealing massive discrepancies. Regulators said this allowed “worthless securities” to circulate, misleading investors and diluting legitimate holdings.
The Philippine Stock Exchange (PSE) suspended the company in March 2021 after discovering the unauthorized recorded shares.
The indictment names James G. Beloy, Amelia G. Beloy, Premy Ann G. Beloy, and Joel Albert G. Beloy, as well as stockholders Joseph M. Acuesta, Ferdinand U. Collado, Leila Collado, Susan May I. Gacelo, Andrei Vincent Freight Services Corp., and Jubileum Air and Sea Logistics Inc. Prosecutors alleged that Abra Mining issued stock below par value and without full payment, which was then validated by Asian Transfer, lodged with PDTC, and sold to the public as legitimate.
Before the complaint, the SEC fined Abra Mining, its executives, the transfer agent, and key stockholders over PHP 560 million and permanently barred them from serving as officers or directors of any listed company.
“The indictment of AR, its officers, stock transfer agent, and stockholders marks a vital step in upholding trust and confidence in our capital market,” SEC chair Francis Ed. Lim said, noting the case was filed under his predecessor, Emilio Aquino. “The SEC remains steadfast in its commitment to hold accountable any entity found to have violated that trust, and ensure that they are brought before the proper venues to answer for their actions,” Lim added.
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