Court finds Calata execs guilty of market violation

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The Makati City Regional Trial Court found the top executives of delisted Calata Corp. guilty of market manipulation over its botched P65-billion casino project in Cebu, the Securities and Exchange Commission said Tuesday.

Calata and Fabella were sentenced to pay fines amounting to P4 million each, or to serve time in prison if they fail to pay the fines on account of insolvency. Section 24 of the SRC penalizes anyone who directly or indirectly makes false or misleading statements with respect to any material fact, which he knew or had reasonable ground to believe was so false or misleading, for the purpose of inducing investors to buy a security listed or traded on an exchange.

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