MANILA, Philippines – Property tycoon Manny Villar and members of his family have been subpoenaed for alleged violations of the Securities Regulation Code in connection with a criminal complaint filed last January 30 by corporate regulator Securities and Exchange Commission (SEC). 

The Department of Justice (DOJ) said on Monday, March 2, that the SEC complaint underwent initial evaluation, and the agency decided it would proceed to preliminary investigation.

DOJ spokesperson Polo Martinez said subpoenas have been served on Manny Villar; his wife, former senator Cynthia; and their children, incumbent senators Mark and Camille, plus businessman Mark Paolo; and other respondents.

“The DOJ will determine if there is merit to the allegations by the SEC. Of course, as a matter of procedure, all respondents will be given an opportunity to present their defenses,” Martinez said. 

SEC filed the criminal complaints against Villar Land Holdings Corporation (formerly Golden MV Holdings), its related companies and senior executives, accusing the group of market manipulation, insider trading and misleading disclosures that regulators say distorted share prices and undermined investor confidence.

The SEC complaint centers on Villar Land’s public release of its 2024 financial statements, which reported a dramatic surge in total assets to ₱1.33 trillion and net income of nearly ₱1 trillion — figures that stunned the market and triggered sharp movements in the company’s share price.

The company attributed the jump to a massive revaluation of its real estate holdings, particularly land within its flagship Villar City development, south of Metro Manila.

But the SEC alleged that those figures were disclosed to investors before the company’s external audit had been completed. Its independent auditor later clarified that the financial statements had not been fully audited, especially with respect to property valuations that accounted for nearly all of the reported gains.

When Villar Land subsequently submitted its audited financial statements, total assets stood at just ₱35.7 billion — a fraction of what had earlier been reported.

The SEC said the discrepancy was not merely technical but materially misleading, particularly given the market reaction that followed the initial disclosure.

The complaint further alleged that related companies — including Infra Holdings Corporation and MGS Construction — engaged in trading activities that artificially supported the price of the Villar Land shares.

Infra Holdings is owned by Virgilio B. Villar, the brother of Manny Villar, according to the filing.

The SEC also accused Senator Camille A. Villar, a board member and member of the family’s next generation of executives, of insider trading for purchasing company shares shortly before a corporate disclosure in 2017 that led to a rise in the stock’s price.

In a statement on February 3, Manny Villar said Villar Land has “consistently upheld the highest standards of good corporate governance.”

“All our businesses and officers understand that corporate good governance is essential for building trust among investors and fostering sustainable growth. In fact, we welcomed and fully cooperated when the SEC began its fact-finding investigation,” he said. 

He also said the Villar group is “unequivocally committed to transparency and compliance with existing rules and regulations being enforced by both the SEC and the Philippine Stock Exchange,” and that they have “consistently disclosed material developments and continues to coordinate with regulatory bodies regarding the status of our financials.”

The family had also said they would respond to the allegations raised by the SEC “in the proper forum” after receiving copies of the complaint. – with reports from Jairo Bolledo and Val Villanueva/Rappler.com