Broker in biggest PSE scandal gets 14-year prison term

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MANILA, Philippines — Twenty-two years after the Philippine Stock Exchange (PSE) was rocked by the biggest scandal in its history, a local stockbroker was convicted for illegal trades linked to the 1999 stock price manipulation scam involving BW Resources Corp.

The Pasig City Regional Trial Court (RTC) has sentenced Johnny Yap, then president, sales manager, and director of Solar Securities Inc., to 14 years in prison for trades that led to a dizzying 1,462-percent surge in the stock price of the loss-making gaming stock BW within a single year. Yap was also ordered to pay a fine of P1 million.

The decision marked the very first conviction won in court by the Securities and Exchange Commission (SEC) in relation to the BW scandal that had since catalyzed a string of governance reforms.

In over two decades, the corporate regulator has run after a number of stockbrokers and investors linked to the BW…

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