- Petitioner
- B.H. Chua Securities
- Respondent
- Johnston Sia-Uy
- Citation
- G.R. No. 202485
- Court
- Supreme Court
- Division
- Third Division
- Decided
- February 22, 2017
Summary
B.H. Chua Securities Corp. entered into a margin account agreement with Johnston Sia-Uy in 1997, managed by unlicensed salesman Go Tak Lee. When Sia-Uy's account fell below required margins, B.H. Chua deposited his postdated checks instead of issuing proper margin calls, violating securities regulations. SEC found Go lacked required licensing under Section 19 of the Revised Securities Act, making the transactions void under Section 53(b). Supreme Court affirmed SEC and Court of Appeals decisions, ordering B.H. Chua to refund P2,203,816.24 to Sia-Uy and pay P50,000 fine. The case establishes that securities transactions by unlicensed salesmen are void ab initio, requiring restitution under Civil Code principles, and demonstrates liberal application of administrative procedural rules where due process is observed.