CA stops SEC on insider trading ruling vs Ongpin
The Securities and Exchange Commission (SEC) will be taking further action on the insider trading case involving the former Trade Minister Roberto Ongpin, who recently got the support of Court of Appeals (CA) on the case.
The CA, acting on the petition of Ongpin, issued on August 1, 2016 a restraining order to the SEC from enforcing its en banc decision on the 2009 Philex insider trading case.
In its en banc decision, SEC imposed a hundred million peso worth of fine to Ongpin and ordered his disqualification from the board of any company listed in the local bourse for allegedly committing insider trading in 2009 involving the shares of Philex Mining Corp.
SEC Chairperson Teresito Herbosa said it has tasked the agency’s Office of the Solicitor General (OSG) to act upon the CA decision.
“We will refer this to OSG who will represent SEC at the CA. We leave to the OSG what to do,” Herbosa said in a text message.
According to CA, the Temporary Restraining Order (TRO) was supposed to preserve the status quo ante between SEC and Ongpin’s party and so as not to render moot.
In its ruling, the court said the petition of Ongpin raised substantial issues on what acts are punishable as insider trading as well as the question on prescription of the administrative charge.
“In so ruling, we considered not the amount of fine imposed upon Ongpin but the penalty of disqualification and the order for him to relinquish or resign from the positions of director or officer, the extent of which affects not only the company Philex, but all other public and publicly listed corporations,” the decision cited.
“The damage to be suffered, if any, is not quantifiable in terms of monetary value and cannot be remedied under any standard compensation,” it added.
In its restraining order, the Court of Appeals set the hearing for August 23 and 24, 2016.
The law firm of Atty. Estelito P. Mendoza has entered its appearance as collaborating counsel on behalf of Ongpin.
This statement was likewise disclosed by both Atok-Big Wedge Co., Inc. and PhilWeb Corp. in the Philippine Stock Exchange.
SEC specifically ordered Ongpin to pay fine of R174 million for his purchase in 174 transactions of Philex shares on December 2, 2009 as an insider, while in possession of non-public material information.