Latest news with #SECinvestigation
Forbes
12-08-2025
- Business
- Forbes
Gravity-Defying Rise Of Philippine Billionaire Manuel Villar's Property Company Comes Under Regulatory Scrutiny
Property billionaire Manuel Villar's eponymous developer Villar Land Holdings (formerly Golden MV Holdings) said Monday it will cooperate with the Securities and Exchange Commission's investigation that was announced last week into the alleged inflated value of the company's assets and shares. Villar Land said it has been in compliance with existing SEC and Philippine Stock Exchange (PSE) rules. The company is 'currently undergoing a rigorous audit process by external auditors and this includes a comprehensive review of appraisal reports covering high-value properties,' Villar Land's chief financial officer Estrellita Tan said in a statement. Punongbayan & Araullo, a member firm of Grant Thornton International, is the company's external auditor. Last week, SEC chairman Francis Lim disclosed that the securities watchdog had initiated an investigation amid investors' questions over the inflated value of Villar Land's shares. 'We cannot make judgments before investigating the facts,' Lim said. 'Let's just be fair, be as objective as possible. … But we must dig deeper.' The gravity-defying run of Villar Land's shares on the stock market made it the country's most valuable company with its market cap skyrocketing to 1.5 trillion pesos ($26.3 billion). This surpassed the valuations of the Sy siblings' SM Investments and billionaire Ramon Ang's San Miguel, both storied companies with diverse businesses. Villar Land, which started out in the cemetery business and got known for its memorial parks, has a public float of 11%, just above the mandated minimum of 10%. The upward trajectory of its shares came to an abrupt halt in May when trading was suspended by the PSE over the company's delay in filing its audited annual financial statement for 2024. 'The valuation was highly debatable and potentially inflated,' says Toby Allan Arce, head of equity sales trading at Manila-based Globalinks Securities, via text message. In an unaudited financial report released in March, Villar Land said it posted net profit of close to one trillion pesos for 2024 (after providing for a 334-billion-peso deferred tax liability), compared with 1.5 billion pesos in the previous year, thanks to booking a massive 1.3 trillion pesos in revaluation gains. These were accrued, the company said, from the 366-hectare land parcel that it had acquired from Manuel Villar's privately held companies last October at a price of 5.2 billion pesos. Lim, a corporate lawyer who served as president and CEO of the PSE from 2004 to 2010, said the SEC will look at the valuation that was used. 'The company has consistently disclosed material developments and continues to coordinate with regulatory bodies regarding the status of its financials,' Villar Land's Tan said. Villar, a former senator who ran for president in 2010, remains politically influential with two of his children in the Senate. Besides his stakes in Villar Land and other real estate companies, he has interests in energy, media, retail, restaurants, and a water utility company. His real-time net worth of $11 billion, makes him one of the wealthiest persons in the Philippines.
Yahoo
11-07-2025
- Business
- Yahoo
Federal officials say a prominent Georgia Republican was running a $140 million Ponzi scheme
NEWNAN, Ga. (AP) — A prominent Georgia Republican was running a Ponzi scheme that defrauded 300 investors of at least $140 million, federal officials alleged in a complaint filed Thursday. The civil lawsuit by the U.S. Securities and Exchange Commission said First Liberty Building and Loan, controlled by Brant Frost IV, lied to investors about its business of making high-interest loans to companies. Instead, investigators said, it raised more money to repay earlier investors. Frost is alleged to have taken more than $19 million of investor funds for himself, his family and affiliated companies even as the business was going broke, spending $160,000 on jewelry and $335,000 with a rare coin dealer. Frost is also said to have spent $320,000 to rent a vacation home over multiple years in Kennebunkport, Maine, the town where the family of late president George H. W. Bush famously spent summers. The SEC said Frost kept writing checks even after the commission began its investigation First Liberty said last month that it would stop making loans and paying interest and principal to investors in those loans. The company said it was not answering phone calls or emails. First Liberty has not responded to an email seeking comment, and no one was present at its office Thursday evening in Newnan, a suburb southwest of Atlanta. A lawyer who acts as the company's registered agent for corporate purposes said earlier that he had no information. The collapse rocked the religious and political networks that the business drew investors from. It also could have ramifications in state Republican politics, cutting off funding to the far-right candidates that Frost and his family have favored. Investigators said Frost spent $570,000 from investor funds on political contributions. The SEC said the business had only $2.67 million in cash as of May 30, although regulators are also seeking to claw back money from Frost and associated companies. With 300 investors out $140 million, that means the average investor put in nearly $500,000. First Liberty said it made loans to companies that needed cash while they waited for more conventional loans from the U.S. Small Business Administration. It charged high rates of interest — 18% on some loans, according to a document obtained by The Associated Press. First Liberty promised investors equally high rates of return — 16% on the 18% loans. In recent months the business advertised heavily on conservative radio shows promising 'Wall Street returns for Main Street investors.' 'The promise of a high rate of return on an investment is a red flag that should make all potential investors think twice or maybe even three times before investing their money,' Justin C. Jeffries, associate director of enforcement for the SEC's Atlanta Regional Office, said in a statement. The company has represented that it is 'cooperating with federal authorities as part of an effort to accomplish an orderly wind-up of the business.' The SEC said Frost and his companies agreed to the SEC's enforcement actions 'with monetary remedies to be determined by the court at a later date.' While the SEC says there were loans to companies, as many as 90% of those companies have defaulted. By 2021 the company was running as a Ponzi scheme, the complaint said, even as Frost withdrew increasing amounts of money. The business is being investigated by the Georgia secretary of state for possible violations of securities law said Robert Sinners, a spokesperson for the office. A 2023 document obtained by the AP is titled as a 'promissory note,' and Sinners said anyone issuing promissory notes is supposed to be registered with Georgia securities officials. Sinners encouraged any victims to contact the state Securities Division. Federal prosecutors have declined to comment on whether they are considering criminal charges. Sometimes both an SEC civil case and a federal criminal case are filed over investment frauds. Frost has been an important player in Georgia politics since 1988, when he coordinated televangelist Pat Robertson's Republican presidential bid in the state. His son, Brant Frost V, is chairman of the Coweta County Republican Party, where the company is based, and is a former second vice-chair of the state Republican Party. Daughter Katie Frost is Republican chairman of the 3rd Congressional District, which includes Coweta County and other areas southwest of Atlanta. At last month's state Republican convention, Katie Frost chaired a nominating committee that recommended delegates reelect state Party Chairman Josh McKoon. Delegates followed that recommendation, rejecting a number of insurgent candidates.
Associated Press
11-07-2025
- Business
- Associated Press
Federal officials say a prominent Georgia Republican was running a $140 million Ponzi scheme
NEWNAN, Ga. (AP) — A prominent Georgia Republican was running a Ponzi scheme that defrauded 300 investors of at least $140 million, federal officials alleged in a complaint filed Thursday. The civil lawsuit by the U.S. Securities and Exchange Commission said First Liberty Building and Loan, controlled by Brant Frost IV, lied to investors about its business of making high-interest loans to companies. Instead, investigators said, it raised more money to repay earlier investors. Frost is alleged to have taken more than $19 million of investor funds for himself, his family and affiliated companies even as the business was going broke, spending $160,000 on jewelry and $335,000 with a rare coin dealer. Frost is also said to have spent $320,000 to rent a vacation home over multiple years in Kennebunkport, Maine, the town where the family of late president George H. W. Bush famously spent summers. The SEC said Frost kept writing checks even after the commission began its investigation First Liberty said last month that it would stop making loans and paying interest and principal to investors in those loans. The company said it was not answering phone calls or emails. First Liberty has not responded to an email seeking comment, and no one was present at its office Thursday evening in Newnan, a suburb southwest of Atlanta. A lawyer who acts as the company's registered agent for corporate purposes said earlier that he had no information. The collapse rocked the religious and political networks that the business drew investors from. It also could have ramifications in state Republican politics, cutting off funding to the far-right candidates that Frost and his family have favored. Investigators said Frost spent $570,000 from investor funds on political contributions. The SEC said the business had only $2.67 million in cash as of May 30, although regulators are also seeking to claw back money from Frost and associated companies. With 300 investors out $140 million, that means the average investor put in nearly $500,000. First Liberty said it made loans to companies that needed cash while they waited for more conventional loans from the U.S. Small Business Administration. It charged high rates of interest — 18% on some loans, according to a document obtained by The Associated Press. First Liberty promised investors equally high rates of return — 16% on the 18% loans. In recent months the business advertised heavily on conservative radio shows promising 'Wall Street returns for Main Street investors.' 'The promise of a high rate of return on an investment is a red flag that should make all potential investors think twice or maybe even three times before investing their money,' Justin C. Jeffries, associate director of enforcement for the SEC's Atlanta Regional Office, said in a statement. The company has represented that it is 'cooperating with federal authorities as part of an effort to accomplish an orderly wind-up of the business.' The SEC said Frost and his companies agreed to the SEC's enforcement actions 'with monetary remedies to be determined by the court at a later date.' While the SEC says there were loans to companies, as many as 90% of those companies have defaulted. By 2021 the company was running as a Ponzi scheme, the complaint said, even as Frost withdrew increasing amounts of money. The business is being investigated by the Georgia secretary of state for possible violations of securities law said Robert Sinners, a spokesperson for the office. A 2023 document obtained by the AP is titled as a 'promissory note,' and Sinners said anyone issuing promissory notes is supposed to be registered with Georgia securities officials. Sinners encouraged any victims to contact the state Securities Division. Federal prosecutors have declined to comment on whether they are considering criminal charges. Sometimes both an SEC civil case and a federal criminal case are filed over investment frauds. Frost has been an important player in Georgia politics since 1988, when he coordinated televangelist Pat Robertson's Republican presidential bid in the state. His son, Brant Frost V, is chairman of the Coweta County Republican Party, where the company is based, and is a former second vice-chair of the state Republican Party. Daughter Katie Frost is Republican chairman of the 3rd Congressional District, which includes Coweta County and other areas southwest of Atlanta. At last month's state Republican convention, Katie Frost chaired a nominating committee that recommended delegates reelect state Party Chairman Josh McKoon. Delegates followed that recommendation, rejecting a number of insurgent candidates.
