Case Summary (G.R. No. 195542)
Background Facts
In 2007, numerous complaints were lodged against PIPC Corporation after the primary perpetrator, Michael H.K. Liew, went missing, taking with him substantial amounts of investors' money. PIPC Corporation was believed to be engaging in investment programs promising high returns with low risk. Santos allegedly played a role in enticing individuals to invest by providing misleading information about the investment products of PIPC and its alleged affiliations with overseas entities.
Legal Proceedings
The SEC formally filed a complaint against Santos, along with other officers of PIPC, for violations, specifically referencing Section 28 of Republic Act No. 8799, the Securities Regulation Code (SRC). The complaint claimed that Santos, along with others, had engaged in the offer and sale of unregistered securities while not being duly authorized to do so as required by the SRC.
Santos’ Defense
Santos denied the allegations, asserting that she was not responsible for soliciting any investments and had merely provided information as a part of her employment duties. She claimed that the investments from Lorenzo and Sy were made directly to PIPC-BVI, not to her or PIPC Corporation. Santos contended that there was a lack of evidence to demonstrate that she violated the SRC, particularly arguing that she acted within the bounds of her employment without malicious intent or criminal malfeasance.
DOJ and Appellate Court Resolutions
The Department of Justice (DOJ) initially found probable cause against Santos for violations of the SRC but subsequently, after a petition for review, the Office of the Secretary of Justice overturned this decision, leading to her exclusion from prosecution. The Court of Appeals affirmed this resolution, noting that Santos did not engage in buying or selling securities or act as a broker or agent, as no evidence directly demonstrated her involvement in the sale process.
Supreme Court Decision
The Supreme Court reviewed the case, emphasizing the broad discretion of prosecuting officials in determining probable cause during preliminary investigations. The Court ultimately ruled that the evidence suggested Santos had enticed complain
...continue readingCase Syllabus (G.R. No. 195542)
Case Overview
- This case involves a petition for review on certiorari filed by the Securities and Exchange Commission (SEC) against Oudine Santos.
- The SEC challenges the Court of Appeals' decision affirming the Secretary of Justice's resolution that dismissed the complaint against Santos for alleged violations of the Securities Regulation Code.
Background of the Case
- In 2007, an investment scam led to the disappearance of Michael H.K. Liew, the self-styled financial guru behind Performance Investment Products Corporation (PIPC-BVI), which operated in the Philippines through the Philippine International Planning Center Corporation (PIPC Corporation).
- The SEC received numerous complaints from investors claiming they were defrauded by PIPC Corporation and its representatives, including Santos, who acted as an investment consultant.
Details of the Investment Scheme
- Investors were enticed with promises of returns ranging from 12% to 18% per annum with minimal risk, requiring a minimum investment of $40,000.
- Private complainants Lorenzo and Sy detailed how they were approached by Santos and induced to invest in PIPC Corporation's investment products.
- The investment products were represented as safe and secured by professional traders but were ultimately revealed to be part of a fraudulent scheme.
The SEC Complaint
- The SEC filed a complaint against Santos and other PIPC officers, alleging violations of Sections 8, 26,