P900-M internal fraud rocks Metrobank

**badkuk** · July 29th, 2017 08:27 AM

^ Some if not most of these white collar crimes are just brazen thievery and don't involve complicates schemes, e.g. accepted clients' money but did not deposit, promised X% returns then issued rubberized checks as dividend, etc. etc.

**dr. d** · July 29th, 2017 10:46 AM

Originally Posted by 2856370

Because of the huge possibility that she did not act alone and it's a syndicate ... as to why people would think that she acted alone is a mystery ... in a banking system, there are hardly any loopholes ... only human error, negligence and complacency ...

and the most important... wilfull act.

**Monseratto** · August 18th, 2017 02:25 PM

Dahil sa Metrobank scandal, nalaman na binenta na pala yung kanyang MBT shares...

Biz Buzz: Rogue stockbroker strikes | Inquirer Business

Biz Buzz: Rogue stockbroker strikes
Philippine Daily Inquirer / 05:18 AM August 18, 2017
P2.2 billion.

That’s the value of a high net worth client’s investments in the stock market that’s gone missing from the inventory of a local stockbroker named DW Capital Inc., according to our sources at the bourse.

The stink is such that the Capital Markets Integrity Corp.—the independent watchdog of the Philippine Stock Exchange—recently ordered the suspension of DW Capital from trading directly or indirectly on the PSE. Yes, it’s that bad.

Biz Buzz was informed of the details by a couple of market officials familiar with the problem and, if the reports are accurate, this seems to echo previous stockbroker scandals of years gone by. Simply put, a ranking official of DW is being accused by his client of trading the latter’s stocks (selling them, to be exact) without proper authority… and running off with the money.

According to at least two sources, the problem started not too long ago when one of DW’s clients called up the firm’s boss to order that his portfolio of shares in Metropolitan Bank and Trust Co. be sold. We’re guessing this is on account of the recent insider fraud incident at Metrobank the Inquirer revealed a few weeks ago that resulted in a sharp drop in the bank’s shares (but that’s another story worth telling one of these days).

In any case, this high net worth client—the owner of a large chain of shopping malls in Visayas and Mindanao—was shocked to learn that his holdings of Metrobank stocks (worth P2.2 billon at acquisition) were nowhere to be found.

Word on the street is that the client’s portfolio was liquidated by the ranking DW official without his knowledge and the proceeds were kept by the official in question. That’s not the worst of it. We’re told that this stockbroker is actually married to the daughter of the billionaire client who is now worth a couple of billion pesos less (not that it would impact the latter’s net worth too much though).

As is to be expected, this DW official is now the subject of an intensive search by concerned authorities, but has yet to surface, we’re told. Well, you’d hide, too, if there’s P2.2 billion in a client’s funds that you somehow made to disappear, right?

Biz Buzz heard the CMIC had approached the Securities and Exchange Commission seeking an order to take over DW Capital and, presumably, liquidate its assets to settle its liabilities with its clients, many of whom are prominent personalities in the Chinese-Filipino community. Now, we could only hope that there are still enough assets left. — Daxim L. Lucas