SEC director arrested in NBI entrapment operation over alleged extortion

A SECURITIES and Exchange Commission (SEC) director assigned to the Butuan Extension Office was arrested by the National Bureau of Investigation (NBI) in an entrapment operation over an alleged P250,000 extortion attempt from a private corp.

In a statement on Wednesday, the NBI said the arrest stemmed from a complaint filed by counsel of the private corp. alleging that the suspect and an unidentified female companion demanded money in exchange for the non-filing of administrative cases involving alleged violations of corporate and lending laws.

“The initial demand of P650,000.00 — covering the [private corp.’s] thirteen (13) branches in the Caraga Region — was eventually negotiated down to P250,000.00, of which only P80,000.00 would have been officially receipted, with the remaining P170,000.00 going directly to [the accused],” the statement read.

NBI-Caraga said the operation was conducted using marked money dusted with ultraviolet powder. Agents moved in after the handover of cash, recovering several marked bills and a mobile phone allegedly used during the exchange.

The SEC director will be subjected to inquest proceedings before the City Prosecutor’s Office in Butuan City for robbery with intimidation of persons under Article 294 of the Revised Penal Code, direct bribery under Article 210, violation of Section 3 of Republic Act No. 3019 or the Anti-Graft and Corrupt Practices Act, and violation of Section 7 in relation to Section 11 of Republic Act No. 6713 or the Code of Conduct and Ethical Standards for Public Officials and Employees, according to NBI.

In a separate statement early on Wednesday, SEC Chairperson Francisco Ed. Lim said the commission will take action against personnel found violating rules.

“The SEC takes allegations of misconduct and breach of public trust very seriously,” he said.

“As overseer of the corporate sector and regulator of the capital market, the commission maintains zero tolerance against unlawful practices within its walls and will not hesitate to take drastic actions against erring individuals from its ranks,” Mr. Lim added.

The official has been placed under preventive suspension while an investigation is ongoing, according to the commission.

“[We] will continue to do what is necessary under the circumstances, including full cooperation with other government agencies and the aggrieved party,” the SEC said in a Viber message.

The SEC said its operations will continue as normal and are not expected to be affected by the development.

BusinessWorld sought comments via e-mail from the SEC Butuan Extension Office regarding the matter, as the involved official has no publicly available contact information, but has yet to respond.

It also sought comment from the private corp.’s legal counsel, which has yet to respond as of press time. — Alexandria Grace C. Magno