Metro Manila, Philippines – The Department of Justice (DOJ) has ordered members of the influential Villar family, including two sitting senators, to appear in a preliminary investigation over a criminal complaint alleging market manipulation, insider trading, and misleading disclosures.
“After undergoing initial evaluation, the complaint lodged by the SEC against Villar Holdings Corp. et al with the DOJ. will proceed with preliminary investigation for alleged violations of the Securities Regulation Code,” DOJ spokesperson Polo Martinez said in a statement on Monday, March 2.
“Subpoenas have been served upon the respondents,” he added.
The Securities and Exchange Commission (SEC) filed the complaint on Jan. 30 against Villar Land Holdings Corp., its related entities, and a number of its officers.
The respondents included company chairperson and former Sen. Manny Villar; his wife and former Sen. Cynthia Villar; and their children, former directors and now senators Mark Villar and Camille Villar. Other respondents are Manuel Paolo Villar, Cynthia Javarez, Ana Marie Pagsibigan, and Garth Castañeda.
The company’s related entities — Infra Holdings Corp. and MGS Construction — are also respondents, along with their respective officers.
The charges stem from Villar Land’s public disclosures and trading activities, which allegedly misled investors and distorted the market price of the company’s shares. Its related entities are accused of engaging in trading activities that allegedly created artificial demand to support the stock price.
Camille Villar has been accused of insider trading after allegedly purchasing 736,000 shares in December 2017 — shortly before the release of a corporate disclosure that led to an increase in the company’s share price.
In a statement, Villar Land and its directors welcomed the DOJ move, saying it gives them the opportunity to present their side.
“The Company and its directors are fully prepared to cooperate with the proper authorities and are confident that an impartial panel will find that no violation of law was committed,” Villar Land said.
The DOJ has scheduled the preliminary investigation for March 16.
“The DOJ will determine if there is merit to the allegations by the SEC. Of course, as a matter of procedure, all respondents will be given an opportunity to present their defenses,” Martinez said.
