MANILA, Philippines — The Department of Justice (DOJ) has indicted Abra Mining & Industrial Corporation (AR), its directors, officers, transfer agent, and several stockholders over the unauthorized and fraudulent trading of shares between 2015 and 2019. In a resolution issued on Aug. 12, state prosecutors found prima facie evidence to charge Abra Mining for violations of the Securities Regulation Code (SRC) and the Revised Corporation Code after the Securities and Exchange Commission (SEC) uncovered irregularities in the firm’s share issuance. The DOJ named AR officers James Beloy, Amelia Beloy, Premy Ann Beloy, and Joel Albert Beloy, together with transfer agent Asian Transfer & Registry Corporation and stockholders Joseph Acuesta, Andrei Vincent Freight Services Corp., Jubileum Air and Sea Logistics Inc., Ferdinand Collado, Leila Collado, and Susan May Gacelo, as respondents in the case. Investigation showed that Abra Mining issued shares in excess of those registered with the SEC and listed with the Philippine Stock Exchange (PSE). These unregistered shares were subsequently lodged with the Philippine Depositary and Trust Corp. (PDTC) and traded in the market under the guise of legitimate securities. The SEC reported that as of February 2021, the number of Abra Mining shares lodged with PDTC totaled 258.96 billion, significantly higher than the 95 billion shares covered by its registration statement and the 72.95 billion shares authorized for listing on the PSE. The figure also exceeded the 99.29 billion issued shares and 199.29 billion outstanding shares indicated in AR’s financial statements. According to prosecutors, the fraudulent scheme involved transactions with certain stockholders and entities where Abra Mining issued shares below par value and not fully paid. Despite non-payment, the company released stock certificates, which were validated by Asian Transfer and later lodged with PDTC for public trading. The DOJ noted that these acts “appear to follow a specific scheme designed to defraud or deceive the public into investing in worthless securities,” resulting in “huge monetary gains” for the respondents. Prior to the indictment, the SEC had imposed more than P560 million in fines against the respondents, and were also disqualified from serving as directors or officers of companies issuing registered securities. “The indictment of [Abra Mining], its officers, stock transfer agent, and stockholders marks a vital step in upholding trust and confidence in our capital market,” SEC Chairperson Francis Lim said in a statement on Saturday. “The SEC remains steadfast in its commitment to hold accountable any entity found to have violated that trust, and ensure that they are brought before the proper venues to answer for their actions,” he added. Trading of Abra Mining shares were suspended March 3, 2021.