THE Court of Appeals (CA) has affirmed the conviction of Palmy Tibayan and Rico Puerto for violating the securities and regulation code. In a ruling penned by Associate Justice Franchito Diamante and concurred in by Associate Justices Japar Dimaampao and Zenaida Galapate-Laguilles, the CA’s Seventh Division affirmed with modification the judgment of the Muntinlupa City Regional Trial Court (RTC), Branch 256, finding Tibayan and Puerto guilty for violation of Republic Act 8799 or the securities and regulation code. The CA also modified the penalty holding to indeterminate sentence of seven to 12 years, as maximum. Palmy, here husband Jesus Tibayan, Ezekiel Martinez and Tiborcio Elacio, both of Tibayan Group Investment Company (TGIC), were charged before the RTC in connection with the issuance of a regulated security called ‘TGIC Mutual Fund’ to spouses Arnel Guia and Rebecca Guia worth P120,000. But the postdated checks supposedly for investment interest were dishonored until the case reached the court. According to the complaint, it was made without valid registration statement duly filed with and approved by the Securities and Exchange Commission.