THE Securities and Exchange Commission said on Monday it formed a special panel that would conduct a hearing on the case of brokerage firm DW Capital, Inc. (DWCI), after it received a complaint alleging that the brokerage had engaged in unauthorized trading of stocks.
The complaint was filed by Valerie Gaisano-Sebastian against DWCI for allegedly engaging in unauthorized, fraudulent, and deceitful acts by selling her shares of stocks without her knowledge and consent.
The special hearing panel will be comprised of lawyers from the Enforcement and Investor Protection Department, Office of the General Counsel, and the Markets and Securities Regulation Department (MSRD).
Last August 29, the commission said that the brokerage firm had already complied with the August 18 subpoena duces tecum issued by the MSRD.
“DWCI submitted all the documents enumerated in the subpoena. DWCI asserted that the Gaisano family’s trades were all authorized,” the SEC said.
“The Commission En Banc decided to form the Special Hearing Panel considering the extent of the transactions involved and allegations of fraud committed by a trading participant. There are also claims and counterclaims by DWCI and its clients the Gaisanos,” it said.
The special hearing panel will continue the investigation and verification of the allegations contained in the petition filed on August 18 by the Capital Markets Integrity Corporation (CMIC) to take over the operations of DW Capital.
The CMIC regulates trading participants of the local bourse. Its petition for takeover is still pending with the SEC and the determination of financial deterioration of DWCI is still ongoing, according to the commission.