Australian-listed Celsius Resources Ltd. has filed a criminal complaint before the Department of Justice (DOJ) against its former executive chairman, Atty. Julito “Sarge” R. Sarmiento, for allegedly helping set up a scheme that allows foreign investors to control a Philippine mining firm.

In a complaint filed July 31, Celsius accused Sarmiento of violating the Anti-Dummy Law, which bans foreigners from using Filipino “nominees” to get around ownership limits. The law requires companies in certain industries, like mining, to be at least 60% Filipino-owned. Violations can lead to five to 15 years in prison.

The complaint cites a Jan. 17 email from Sarmiento outlining a plan where “trusted Filipinos” would legally hold the majority stake, but would sign documents giving full control back to foreign investors.

Celsius said this setup goes against Supreme Court rulings, which require Filipino owners to have real control—not just names on paper.

The company also raised concerns over recent changes at Makilala Mining Company, Inc. (MMCI), where Celsius owns 40%. It said Sarmiento was reappointed chairman after a board overhaul in April, and that company records were moved to his law firm, limiting Celsius’ access.

Meanwhile, a firm linked to India-based Kiri Industries has moved to foreclose on Celsius’ stake in MMCI, with an auction set for Aug. 10.

Sarmiento has not publicly responded.

The DOJ has yet to decide whether there is enough evidence to pursue charges.