The Court of Appeals has nullified the Justice Department’s ruling dismissing the charges of market manipulation against eight shareholders of agribusiness firm Calata Corp.
The CA decision effectively upheld the Securities and Exchange Commission’s filing of criminal cases against Michael Ilustre Angeles, Carmelo Dela Cruz Bunag, Arnold Ryan Daquis Dellosa, Richie Ramille Isip, Arnold Daquiz Martin, Dennis Philippe Valencia Vistan, Zandro Jose Sigfrido Laki Zulueta and Gary Lincoln Calixtro Taboso.
The individuals were charged of propping up the share price of Calata to induce the public to buy following the company’s listing in 2012.
Angeles, Bunag, Dellosa, Isip, Martin, Vistan, Zulueta, Taboso and their representatives were found to have “engaged in high-volume buying and selling transactions and several EQ trades, or the transfer of shares from one broker to another, to artificially raise the price of Calata’s shares and make profits in the process” in violation of the Securities Regulation Code.
They allegedly employed manipulative devices such as “painting the tape” and “hype and dump” immediately after Calata went public on May 23, 2012.
The company’s share price had more than tripled to P23.95 from P7.35 apiece.
According to the SEC, the errant shareholders traded their respective shares by opening accounts with several brokers.
Zulueta was identified as the CEO of Calata’s financial adviser for its initial public offering.
