Ongpin vows to fight SEC over insider trading allegations

MANILA, Philippines - Businessman Roberto Ongpin is set to fight the Securities and Exchange Commission (SEC) after it slapped a fine of P174 million  on him last week   for alleged insider trading.

Ongpin, who dubbed the SEC’s decision as “erroneous and grossly unfair,” said he would elevate the case to the Court of Appeals.

“I thought the persecution under the Aquino administration had ended, but apparently the remaining minions of the past administration are still determined to get me,” Ongpin said.

The SEC en banc on Thursday modified the order of the SEC’s Enforcement and Investor Protection department (EIPD) asking Ongpin to pay a fine of P174 million for the purchase in 174 transactions of Philex Mining Corp. shares on Dec. 2, 2009 as an insider while in possession of non-public material information.

In its original ruling, the EIPD ordered Ongpin to pay P17.4 million, having been found liable for committing 174 counts of insider trading.

Furthermore, the SEC ruled that Ongpin, who is currently chairman of listed companies Philweb Corp. and Atok Big Wedge Inc., is now disqualified from being an officer or member of the board of directors of a public company or listed company.

The SEC said Ongpin benefitted from insider information as a director and shareholder of Philex when he acquired additional shares in the mining firm before the company sold to the First Pacific Group in 2009.

On Nov. 24, 2009, businessman Manuel V. Pangilinan of the First Pacific Group and Ongpin entered into negotiations for First Pacific Group’s acquisition of Philex shares from the businessman.

However, Ongpin denied this and pointed out the case was shifted by the SEC to an insider trading case although there was no evidence of insider trading as Ongpin was simply negotiating a price with Pangilinan, which was a straightforward commercial transaction and was never based on any insider information. 

“The jurisprudence is clear, there was no insider trading at all,” Ongpin said. 

More significantly, the case was filed almost a full year after the two year deadline imposed by the Securities and Regulations Code. 

The businessman said the penalties imposed on him by the SEC were “cruel and unusual punishment” requiring him to resign from all listed companies.

This, he said, would effectively force him to go out of business and terminate his business career.