3 more Legacy execs named respondents in SEC complaint

MANILA, Philippines - Three more executives of the beleaguered Legacy Group were included in the complaint filed by the government before the Justice Department. They are Namnama Pasetes, Legacy's chief finance officer, Arcatomy Guarin, president of the Legacy Card, and board member Eric Purugganan. Pasetes testified in a recent Senate hearing about the alleged misuse of funds by Legacy Group owner Celso de los Angeles Jr., mayor of Sto Domingo town in Albay province. The Securities and Exchange Commission (SEC) filed the complaint against the Legacy officers for alleged violation of the provisions of the Securities Regulation Code (SRC). Pasetes told the Senate Committee on Trade and Commerce in a hearing early this month that De los Angeles used the collapsed firm's funds for his personal interest, which included payments for medicine and electricity bills, yacht repairs, talent fees for artists during birthday parties, salaries of household helpers, laundry expenses, and newspaper advertisements. She also claimed that De los Angeles ordered her to disburse P1.8 million to Parañaque Rep. Eduardo Zialcita as “consultancy fee." The lawmaker denied being a consultant for Legacy Group. The SEC said the respondents it named in its February 26 complaint was based on 2003 General Information Sheet (GIS) that Legacy Card filed with the commission. Among the respondents in the complaint that was based on the 2003 GIS were De los Angeles Jr, former chairman and chief executive officer and director of Legacy; Martin Nicolo Delos Angeles, Victorino Delos Angeles, Purita Delos Angeles, board of directors of Legacy Card; Norman Tiongson, corporate secretary; Carolina Hinola, Christine Antenor Cruz, SVP-finance officers; Rita Maniacup, AVP-finance officer; Basilio Ponciano Carpio, senior manager; Roy Hilario, director and authorized representative; and several John and Jane Does. However, a check with the SEC's Corporate Registration and Monitoring Department's data base showed that the Legacy Card filed another GIS in 2008 indicating that there had been a change in the membership of its board of directors. The 2008 GIS showed De los Angeles as Legacy Card’s incorporator; Guarin as president, Pasetes, treasurer; Purruganan, member; lawyer Christine A.C. Limpin, corporate secretary; Hinola and Hilario as members. “Taken as a whole, it appears that respondent Legacy Card conspired with and aided Legacy Consolidated Plans, Inc. (LCPI) in its grand scheme to defraud the investing public," the SEC said. In its complaint, the SEC alleged that LCPI offered and sold various investment schemes as “shares, participation or interest in a corporation or in a commercial enterprise or profit-making venture." SEC said such investment contracts are required under Section 8 of the SRC to be registered before being offered or sold to the general public, which Legacy allegedly failed to comply with. - GMANews.TV