Villar Land Holdings Corp. acknowledges the recent announcement regarding a complaint filed by the Securities and Exchange Commission, but states it has yet to receive official notification. The company intends to fully address all allegations once the formal complaint is in hand, promising a comprehensive response to the charges.
The SEC alleges a pattern of market manipulation, insider trading, and misleading disclosures designed to artificially inflate Villar Land’s share price and deceive investors. These accusations center around the company’s public statements and trading activities, which the regulator believes created a distorted view of its financial health.
Named in the complaint are prominent figures including Manuel B. Villar, Jr., former Senator Cynthia A. Villar, and several directors and independent directors associated with the company. Related entities, Infra Holdings Corp. and MGS Construction, along with their respective officers, also face scrutiny for alleged violations of securities regulations.
The core of the SEC’s case revolves around Villar Land’s 2024 financial statements, initially reporting staggering assets of P1.33 trillion and a net income surge to P999.72 billion. This dramatic increase was attributed to a revaluation of the company’s real estate holdings, a move that immediately drew the SEC’s attention.
Crucially, these impressive figures were released *before* completion of an external audit. When a fully audited statement was finally submitted, the reported total assets plummeted to P35.7 billion, raising serious questions about the initial disclosures and the valuation process.
The SEC also points to suspicious trading activity by related entities, specifically Infra Holdings Corp. and MGS Construction, alleging these actions were orchestrated to create artificial demand for Villar Land shares and prop up the stock price. This coordinated effort, according to the SEC, further misled investors.
Adding to the allegations, Camille A. Villar is accused of insider trading, specifically purchasing a significant number of shares in December 2017 just prior to a public announcement that triggered a substantial increase in the stock’s value. This timing raises concerns about privileged access to non-public information.
SEC Chairperson Francisco Ed. Lim emphasized the importance of maintaining investor confidence in the Philippine capital market. He stated the Commission is committed to vigorously pursuing fraudulent and manipulative practices that undermine the integrity of the market and harm investors.
This case extends beyond the financial statements themselves. The SEC previously revoked the accreditation of E-Value Phils, Inc., Villar Land’s appraiser, after the firm failed to adequately justify its initial P1.33-trillion valuation of the company’s properties, highlighting concerns about the appraisal process.
The unfolding situation underscores the SEC’s commitment to enforcing strict standards of corporate governance and protecting the interests of investors. The outcome of this case will likely have significant implications for Villar Land and the broader Philippine financial landscape.
