But in its Aug. 12 resolution, obtained by InsiderPH, the DOJ rejected their defense, saying their executive roles and Abra’s filings indicated direct involvement and “willful blindness” in a scheme that flooded the market with fictitious shares.
“Respondent Beloys cannot feign ignorance as they are expected to have observed the highest level of diligence and care,” the DOJ said in its resolution that recommended criminal charges against the executives.
“All held key positions in Abra and are presumed to be educated. It is highly improbable for them to be deceived and be ignorant of the goings-on in Abra, particularly involving a substantial number of shares and its monetary equivalent which would greatly impact the assets/income of Abra and/or the Beloy family,” it said.
“Blame must be imputed for their acquiescence, non-action, willful blindness and over-reliance on Jeremias Beloy. They cannot escape liability by simply pointing at Jeremias Beloy,” it added.
Stock market darling
Based on the DOJ filing, the Beloy siblings James, Premy Ann, and Joel Albert claimed the illegal issuances were solely the work of their father, Jeremias Beloy, who supposedly maintained control of the corporation until he died in December 2019.
James Beloy, now in his mid-60s, was elected chair and president of the mining and exploration firm the following month.
The Securities and Exchange Commission (SEC) and the Philippine Stock Exchange (PSE) uncovered the scheme in 2021, tracing it back to 2015–2019 when billions of fake shares were created and traded.
The jump in liquidity helped fuel a price surge of around 280 percent in the midst of the 2021 penny-stock frenzy.
The important role of officers and directors
The DOJ, acting on the complaint filed by the SEC, also stressed that executives cannot escape accountability by blaming a single individual.
“While it was raised that Jeremias Beloy took advantage of his authority and discretion, the respondents are not excused from performing their respective duties as responsible officers/directors of Abra,” the resolution showed.
“Again, they held key positions, all educated and were not just mere rubber stamps of Abra or anybody. It is highly irregular, if not ridiculous, to rely upon and pass on to just one person the operation of market securities, an industry with a sensitive function and highly imbued with public interest,” it added.
Stockholders also indicted
The DOJ said stockholders Leila and Ferdinand Collado, Susan Gacelo, JUBILEUM Air and Sea Logistics Inc., and ANDREI Vincent Freight Services Corp. actively worked with Abra Mining executives to circulate worthless shares.
Prosecutors said their failure to provide proper documentation revealed the trades as part of a deliberate scheme, dismissing their claim that the stock certificates carried a presumption of legitimacy.
“Moreover, respondents Collados, Gacelo, JUBILEUM and ANDREI failed to present any duly executed transaction documents evidencing the legitimate acquisition of the subject shares,” the DOJ said.
“Instead, they merely submitted BDO online fund transfer confirmations, which contained no indication or reference as to the purpose of the transfers or their connection to the acquisition of the shares in question,” it added.
Transfers continued after patriarch’s death
Since their father had died, stockholders continued wiring money for newly issued illegal shares, this time depositing funds into a joint account of James and Joel Beloy.
“The apparent collusion is undisputed showing knowledge, awareness and acquiescence,” the DOJ said.
The DOJ further faulted Asian Transfer & Registry Corp., Abra’s transfer agent, for repeatedly approving the lodgment of unregistered shares, saying its negligence allowed the fraudulent trades to go through.
—Edited by Miguel R. Camus
