DoJ sets April 20 deadline for Villar Land executives’ rebuttals

THE Department of Justice (DoJ) has directed executives of Villar Land Holdings Corp. to submit their formal rebuttals by April 20 following the first preliminary investigation hearing into allegations of market manipulation, insider trading, and misleading disclosures.

During a session held on Monday afternoon, a DoJ panel of prosecutors gave the respondents until April 20 to file their counter-affidavits on the complaint filed by the Securities and Exchange Commission (SEC).

The investigation involves alleged violations of Sections 24.1(b), 26.3, and 27.1 of Republic Act No. 8799, or the Securities Regulation Code (SRC), which cover manipulative practices and insider trading.

Respondent Garth F. Castañeda, who served as an independent director of Villar Land, was the only party to submit a counter-affidavit during the proceedings. Meanwhile, Villar Land director Cynthia J. Javarez filed an Omnibus Motion — which other respondents joined — seeking to suspend the preliminary investigation, recall the subpoenas, and return the case to the SEC.

Senior Deputy State Prosecutor Peter L. Ong, who heads the panel, told reporters that the defense argued in the motion that the SEC failed to make a finding of probable cause required under Section 53.1 of the SRC.

While Mr. Ong initially considered treating the motion as a de facto counter-affidavit, the respondents requested additional time to prepare more comprehensive filings.

“I said that if that is your motion, we will take that as a motion to dismiss… [and] that will serve as your counter-affidavit. So, you won’t have to file [anything else],” Mr. Ong told reporters in a mix of English and Filipino. “Then they suddenly said they would file [counter-affidavits] after all.”

The prosecutors granted the extension, citing the technical complexity of the case and the upcoming Lenten break.

“We gave them enough time to prepare because the annexes from the SEC are quite thick. It’s not just one case; I think there are four. It’s very technical,” Mr. Ong added.

Despite the motion to suspend the proceedings, Mr. Ong said the panel will continue with the investigation while considering the respondents’ arguments.

The panel also directed all respondents to personally appear before DoJ prosecutors to affirm their affidavits.

The SEC earlier flagged Villar Land Holdings Corp. for allegedly reporting P1.33 trillion in assets and P999.72 billion in net income in its March 2024 disclosure, a sharp jump from P1.46 billion the previous year. However, audited financial statements later showed assets of only P35.7 billion after about P1.3 trillion linked to the Villar City valuation was removed. The corporate regulator subsequently fined the company and its officials P12 million for late filing. 

The DoJ earlier issued subpoenas to Villar Land Holdings Corp., its related entities, and key officers. However, despite saying it welcomed the opportunity to respond to the allegations, company officials did not attend Monday’s hearing and were represented only by legal counsel, along with lawyers for related entities.

“I am requesting them to come here. They should swear before us so that we won’t have any doubts about who they swore before,” Mr. Ong said, noting the need for procedural transparency.

The SEC has been ordered to file its opposition to the Omnibus Motion before the next hearing on April 20. The panel will then decide on a date for a clarification hearing. — Erika Mae P. Sinaking