Calata Found Guilty of Market Manipulation
What’s the news: Calata Corporation’s officers, Joseph H. Calata and Jose Marie Fabella, have been fined ₱8 million for making false statements about the Mactan Leisure City project, leading to a surge in share trading.
Why it matters: The court’s decision highlights the legal repercussions for market manipulation, protecting investors from fraudulent practices.
What was the false statement:
- Calata Corporation falsely claimed that the Mactan Leisure City project would start operations in 2020, generate ₱55.74 billion in annual revenue, and significantly impact the region’s tourism and gaming industry.
- But there was no application for a license being made to PAGCOR.
By the numbers: The misleading statements caused a 2,455% surge in trading volume on the day of the disclosure.
- It was followed by a 196.41% jump the next trading day.
However: Michael I. Foxman, associated with the project, remains at large, delaying complete resolution.
What’s next: If Calata and Fabella fail to pay the fines due to insolvency, they face potential imprisonment. Eight Calata shareholders were also indicted previously for market price manipulation, the SEC press release said.
Zooming out: Calata once tried to launch a cryptocurrency called Calcoins. The SEC has moved to stop the Calcoins Initial Coin Offering (ICO), which lead to the regulating issuing its first official advisory on the token issuing mechanism in January 2018.
This article is published on BitPinas: Calata Found Guilty of Market Manipulation
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