Calata execs’ conviction for market manipulation upheld

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June 9, 2025 | 12:00am

MANILA, Philippines — A Makati City regional trial court (RTC) has upheld the conviction of the officers of delisted company Calata Corp. for market manipulation, the Securities and Exchange Commission reported.

The SEC said that Makati RTC Branch 148, in a consolidated order dated May 19, denied the motion for reconsideration filed by the officers of Calata seeking their acquittal on two counts of violation of Section 24(d) of the Securities Regulation Code (SRC).

According to the commission, the court denied Calata officers’ claim that they did not violate Section 24(d) of the SRC, and instead violated Section 17 of the same law pertaining to reportorial requirements, which is merely administrative in nature and does not involve penal sanctions.

The court also rejected their claim that there was insufficient evidence to prove their guilt beyond reasonable doubt, given the lack of actual injuries and witnesses testifying that they suffered losses from the alleged misleading disclosures.

In its decision in May last year, the court sentenced Calata chairman, president and chief executive officer Joseph Calata and its corporate secretary, compliance officer and corporate information officer Jose Marie Fabella to pay fines of P4 million each, or to serve prison time if they fail to pay on account of insolvency.

The decisions stemmed from a case buildup led by the SEC, following statements referring to Calata’s partnership with Sino-America Gaming and Macau Resources Group Ltd., for the development of a $1.4-billion integrated resort and casino project called Mactan Leisure City, that led to a surge in the trading of its shares in 2016.

The company claimed in its disclosure to the Philippine Stock Exchange on Aug. 23, 2016 that the project was expected to start operations in 2020, with projected gross annual revenues of P55.74 billion.

As a result, trading volume of its shares surged by 2,455 percent on the same day, followed by a 196.41 percent increase in the next trading day.

The court ruled that the disclosures contained “unfounded promises and exaggerations,” and such information was disclosed despite the absence of a license application with the Philippine Amusement and Gaming Corp. (PAGCOR) for the project.

The company’s Aug. 26, 2016 disclosure clarifying the partnership agreements for the project was likewise found to be misleading, as it did not provide whether an application for an integrated casino permit was already submitted to PAGCOR.

The SEC said that eight shareholders of Calata were also previously indicted for market manipulation for employing manipulative devices that induced the public to buy its shares.