Pasig court bars HK Securities officials from leaving RP

A Pasig regional trial court has prevented five officers and directors of brokerage HK Securities, Inc. from leaving the country given pending estafa cases against them. The court issued a hold departure order last March 29 on Rodolfo V. Cruz, Cecilia F. Cruz, Primalee Christine Cruz-Cordero, Abelardo R. Cordero and Melogen Buesa, the Philippine Stock Exchange said in a statement on Tuesday. In 2008, several clients of HK Securities sued the directors and officers for syndicated estafa before the Justice department. Four complaints of syndicated estafa were filed against Rodolfo V. Cruz, his family members, and nonexecutive directors of HK Securities for fraudulent transactions. The bourse took over HK Securities’ operations upon an order from the Securities and Exchange Commission on September 25, 2008, when the company failed to account for securities of its clients worth P106 million. HK Securities and its principal stockholder, Rodolfo V. Cruz, promised but failed to pay the short security position. Before the takeover, the PSE Market Regulation Division suspended HK Securities due to violations of the Securities law. The division later expelled the brokerage from the PSE. HK Securities later appealed the sanctions. The bourse said it was validating HK Securities customers’ claims, which will be used to distribute the remaining trade-related assets of the brokerage pursuant to the SEC’s takeover order. The Justice department is pursuing the criminal case on behalf of the complainants, the PSE said. — N.P. Aquino, GMANews.TV