PSE SAYS PHILIPPINES HAD FIRST CRIMINAL CONVICTION UNDER SRC

     (The following press release from Philippine Stock Exchange was received 
by e-mail. The sender verified the statement.) 
NEWS RELEASE 
19 March 2013 
Court convicts stockbroker for Securities Regulation Code violations 
 The Regional Trial Court of Makati City (RTC) has put finality to a landmark
securities case after handing the guilty verdict to Mr. Francisco O.
Borromeo on seven violations of Republic Act No. 8799 or the Securities
Regulation Code.  Mr. Borromeo, former president of the defunct brokerage
house Asian Capital Equities, Inc. (ACEI) was sentenced to pay a total
amount of P2.1 million. 
The verdict was issued by Judge Selma Palacio Alaras of Branch 32 of the RTC
on March 19, 2013 following the withdrawal of Mr. Borromeo’s pleas of not
guilty and his voluntary entry of pleas of guilty on all seven charges.  The
cases against Mr. Borromeo were filed on January 2005 on the account of the
unlawful and felonious acts he committed in order to defraud his clients,
including, among others, the sale of his client’s shares without his
client’s consent, the use of fictitious and dummy accounts in buying
transactions and his failure to deliver the payment proceeds from the sale
of his client’s shares. 
 In the course of the presentation of evidence against the accused, Mr.
Borromeo reconsidered his not guilty plea and entered a plea of guilty,”
Department of Justice Senior State Prosecutor Peter Ong explained. 
 Mr. Borromeo was arraigned on August 14, 2007 where he entered not guilty
pleas to all the charges filed against him.  In May 2007, the PSE sought the
help of the public in tracking down Mr. Borromeo who went in hiding after
several arrest warrants were issued against him.   
 Meanwhile, Philippine Stock Exchange President and CEO Hans B. Sicat
expressed that this decision is in line with the good governance efforts of
the PSE and the government.  “I understand that this is the first criminal
conviction under the Securities Regulation Code which is one of the reasons
why the PSE has been following this case closely.  The outcome of this case
shows that white collar crimes are punished in this country,” Mr. Sicat
said. 
 We thank all the hard work of the Securities and Exchange Commission and
the Department of Justice in helping ensure that justice is served to Mr.
Borromeo.  This should help give more confidence to the growing investing
public,” Mr. Sicat added. 
 ACEI was closed in 2003 and its assets, including its trading right, were
liquidated in 2008 to settle its liabilities to clients. ###
 
 
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