Venture Securities spins R&L investment in stock scandal

Venture Securities “is as much a victim as R & L’s customers,” says President Wilfred Racadio

Venture Securities Incorporated (VSI) is exhausting all legal remedies to prove that it did not violate any regulatory requirements in revoking its license.

His license was revoked because of the stock market scandal that also led to the collapse of another brokerage company, R&L Investments.

The scandal that erupted in 2019 affected an employee of R&L who acted as a trading venue assistant and clearing clerk who stole his holdings of shares worth over 700 million pesos by forging documents and transferring shares to VSI. The program was carried out from 2012 to 2019.

The Securities and Exchange Commission (SEC) has since revoked both R&L and VSI’s license and fines of P25 million and P32 million, respectively.

In a statement released Tuesday, June 15, Venture Securities said it was not the “immediate cause of fraud” that led to the collapse of R&L.

“The case against Ventures stemmed from fraudulent activities that were only committed within R&L. Records show that a certain Marlo Moron, who acted as both a trader and a back-office clerk, was doing EQ business for a brokerage firm in violation of SEC rules with the apparent consent of the owners of R&L. This means that he had the access code from R&L to use the Philippine Central Depository (PCD) system, ”said Wilfred Racadio, President of Venture Securities.

“With the access code, Mr. Moron transferred his customers’ shares to a Julieto Sulapas. Hence, no broker trading in R&L will know that Mr Sulapas’ stock is not his. This fraudulent scheme took place exclusively within R&L. EQ trades are normal trades on the stock exchange. Ventures had no idea about Mr. Moron’s fraudulent plans. Ventures is just as much a victim as R & L’s customers. “

VSI also noted that Capital Markets Integrity Corporation, whose job it is to screen brokers and ensure fraudulent activity is not occurring, “has not alerted R&L to anomalies that are easily discovered”. – Rappler.com

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