SEC in Philippines brings criminal charges against tycoon Manuel Villar and company for …

The Philippines Securities and Exchange Commission (SEC) has recently taken legal action against Villar Land Holdings Corp, Manuel Villar Jr, and a number of directors for engaging in activities such as market manipulation, insider trading, and providing misleading information to investors. The accusations stem from the valuation of land earmarked for a mixed-use development in southern Manila that is set to feature two casinos.

Through a public statement released over the weekend, the SEC accused Villar Land of breaching the Securities Regulation Code by disseminating false or deceitful information and engaging in fraudulent practices that harmed investors. In response, Villar Land stated that it and its directors would address the allegations once they officially received the complaint. However, as of a Monday filing, the company had not obtained a copy of the complaint, rendering them unaware of specific details other than what was made public by the SEC.

The company underscored that they are entitled to due process and anticipated receiving and responding to the allegations outlined by the SEC correctly. The legal complaint follows an earlier report by IAG regarding concerns with the land valuation, which swiftly escalated. The valuation discrepancy led to a significant decline in Manuel Villar’s personal wealth, with his share price plunging by US$18 billion. Subsequently, Bloomberry Resorts Corp’s Enrique K Razon Jr eclipsed Villar as the wealthiest person in the Philippines.

The valuation of the disputed land, initially purchased for Php5.2 billion (US$88.1 million) from entities privately owned by Villar, was subsequently revalued at over Php1.3 trillion (US$22.0 billion), indicating an astonishing surge of almost 25,000%. Following the refusal of Villar Land’s external auditor to endorse the revision, the company’s shares were halted, delaying the release of its audited 2024 Annual Report. A revised land valuation of Php8.7 billion (US$148 million) later surfaced, resulting in a revised net profit of Php1.4 billion (US$23.7 million) for the year.

Prior to these developments, Manuel Villar had planned to refocus on his grand endeavor, Villar City – a 3,500-hectare mixed-use project in the southern part of Metro Manila. Villar City was envisioned as a sprawling metropolis connecting various locales across Metro Manila and Cavite, featuring a diverse array of facilities including a central business district, a tech hub, an educational hub, a healthcare facility, golf courses, and recreational amenities, including two casinos.

Inside Asian Gaming reiterated that the casino segment alone might incur a cost of approximately US$1 billion, with the inaugural casino to be situated in the Vista Mall Global South shopping complex spanning 18,000 square meters. Although targeted at both international and local players, the casino project faced setbacks when a partnership with Dowinn Group to operate the venue collapsed amid financial difficulties in 2024.