SEC takes control of R&L-Moron scam probe, orders all brokers to submit records
Eager to get to the bottom of things, the Securities and Exchange Commission has launched its own probe on stock brokerage R&L Investments which saw over P700 million worth of its stock inventory stolen by a long-time employee.
The massive fraud was perpetuated by R&L Investments’ trusted settlement clerk Marlo Moron who started stealing from the company in 2011, transferring shares to another account under Julieto Sulapas of Venture Securities.
Recognizing the gravity and enormity of the fraud, the SEC’s Enforcement and Investor Protection Department has decided to step in, citing its power to investigate violations of the Securities Regulation Code.
The SEC has directed stock brokerage firms to immediately provide the accounts maintained by Sulapas and Moron, certified true copies of their customer account form and all account opening documents, certified true copies of they customer ledger from the time of opening of the account to the present and all other pertinent documents evidencing any transaction, transfers or conveyances.
It also enjoined all stock broker firms with accounts of Sulapas and Moron from transacting and transferring any and all shares, cash and other assets belonging to Sulapas and Moron accounts and related accounts if any.
SEC said this was necessary to conduct a through investigation on the case and to “forestall any grave damage and prejudice to all concerned as well as to ensure the preservation of the customer assets for the benefit of investors.