Ex-PSE exec Jay Peñaflor denies stock scam before DOJ

MANILA, Philippines – The so-called “stock guru” accused of duping individuals into investing a total of P300 million ($6.43 million) in a stock scam has denied the allegation before the Department of Justice.

Former stock broker Jose Cecilio “Jay” Peñaflor and his brother Angelo appeared before the DOJ for the first time since it started its preliminary probe into what the National Bureau of Investigation (NBI) believed to be the biggest scam in the history of the Philippine Stock Exchange.

Assistant State Prosecutor Rodan Parrocha refused to release copies of the Peñaflors’ counter-affidavits to the swindling and syndicated estafa complaint filed against them by their alleged victim, Joyce Marie Jao.

“Basically, the two denied the charges. That’s a common defense of respondents,” Parrocha told reporters in an interview. (READ: SEC warns public against dealing with ex-PSE employee)

“Iyon ang undertaking ng lawyer [ni Peñaflor], last time na maga-appear iyong kliyente niya. So somehow tinupad naman niya iyong pangako niya (That was the undertaking of Peñaflor’s lawyer, his client will appear for the last time. So somehow, he kept his promise),” he added.

Aside from the Peñaflor brothers, the NBI named John Benedict Aguzar, Rafael Sigua, and a certain “Mike” as respondents in the alleged stock scam case.

Hefty profit

In her complaint, Jao claimed that in March 2015, she was enticed by Peñaflor to buy stocks of ABS-CBN Corporation with a guaranteed hefty profit. She was told to open an account at Regina Capital, wherein the suspect’s company, CAP-M Consultancy Company, was allegedly connected.

Jao was advised to buy stocks through CAP-M, so that within 12 to 15 days, she would sell the stocks with a 50%-profit. She invested P456,000 ($9,760.52) for 9,500 shares of alleged ABS-CBN stocks at P48 ($1.03) per share. 

After 12 days, Peñaflor reportedly told her that her stock was traded and earned more than P130,000 ($2,782.60). She then decided to reinvest her capital and profit with CAP-M.

Soon, she became more aggressive and repeatedly reinvested her profits and additional principal with CAP-M ranging from P197,400 ($4,227.17) to P1.88 million ($40,288.25) from March 30 to July 28, 2015.

Jao also made an additional investment of P2.45 million ($52,503.31) on July 28 and P2.2 million ($47,152.94) in August 2015. Based on her calculation, Jao claimed that she earned P8 million including principal but Peñaflor failed to deliver the entire amount.

Manuel Eduarte, chief of the NBI’s anti-organized transnational crime division, said that when Jao inquired with other investors, she learned that Peñaflor also failed to return their investments.

“Complainant further learned that CAP-M Consultancy Company is not allowed or authorized to manage funds or securities, among others,” Eduarte said.

Entrapment

Based on the complaint of Jao, the NBI official said they conducted an entrapment operation.

Peñaflor was arrested on February 16 in an entrapment operation by the NBI, after he requested the complainant to give an additional investment of P500,000 ($10,716.58).

The so-called “wolf of the PSE” had appeared as a resource person on ANC, and is a part-time teacher at some universities.

Among the alleged victims of Peñaflor’s group were police and military personnel, overseas Filipino workers, retired employees, and doctors who were active in buying stocks in the PSE. 

At least 40 complaints have been filed before the NBI in relation to the stock scam. – Rappler.com

US$1 = P46.66