SEC revokes Mount Peak broker dealer license

The Securities and Exchange Commission (SEC) has revoked the broker dealer license of Mount Peak Securities Inc. and slapped the firm with P17.25 million in penalties following the discovery of multiple regulatory violations and fraudulent financial reporting practices.

The SEC said its Markets and Securities Regulation Department (MSRD) canceled Mount Peak’s registration as a broker dealer for violating 12 provisions of the implementing rules and regulations of the Securities Regulation Code.

The SEC also revoked the licenses of Mount Peak president Wilster Gaweco as a salesman and Marie Stephanie Gaweco as an associated person.

Both were likewise perpetually disqualified from becoming registered persons under the Securities Regulation Code.

The decision stemmed from an investigation by the Capital Markets Integrity Corp., which uncovered irregularities involving Mount Peak’s business practices, records and back-office system.

According to the SEC, Gaweco admitted that an account under the name “Michael Malate” was a dummy account maintained for his personal benefit.

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Mount Peak allegedly used the account to execute trades disguised as client transactions and later altered the account information to create an appearance of regulatory compliance.

The regulator also found forged signatures in a client account information form and cited unauthorized dispositions of customer securities despite insufficient client positions.

The MSRD ruling is currently pending before the Commission En Banc after Mount Peak appealed the decision.