The Securities and Exchange Commission (SEC) has joined forces with DIS (Department of Special Investigations) to tackle the STARK case, which involves money laundering. The SEC has ordered the freezing of the first set of 10 charges related to fraud and is overseeing the financial transactions of STARK and its subsidiaries. The SEC has highlighted that this includes freezing 9% of TOA Vonnarat’s shares. The Tangkaravakunyan family, however, is ready to buy back TOA’s shares. SCBX (Stock Exchange of Thailand) revealed compensation of 2 billion baht. The SEC has also ordered the seizure of 10 assets related to the STARK scam. Thawatchai Pittayasophon, Acting Deputy Secretary General of the SEC, provided an update on the progress of the case, stating that the SEC has filed a complaint against 10 individuals and legal entities for manipulating financial statements and providing false information in the registration statement for debenture offerings. The SEC has frozen the assets of the first set of offenders for 180 days and has sought approval from the court to extend this period for another 180 days due to the public interest harm caused by the crimes. The value of STARK’s liabilities is estimated to be over 38 billion baht. The SEC has also notified the Anti-Money Laundering Office (AMLO) to investigate the case under the Money Laundering Act. The SEC has formed a team to oversee the transactions of the accused companies. The freezing of assets aims to prevent further harm and collect evidence for compensation. The SEC is also investigating unusual trading practices related to the increase in STARK’s stock price. The SEC clarified that the freezing of assets does not mean the suspension of usual business transactions. However, the definition of “normal” or “abnormal” must be discussed with the SEC. On July 7, 2023, more than 300 employees of Phelps Dodge International (Thailand) Co., Ltd., a subsidiary of STARK, sought clarification from the SEC about the impact of the asset freeze on their employment. The SEC assured them that the company can continue its operations and clarified that freezing assets does not imply a halt to business transactions. However, further discussions are scheduled to address concerns about the company’s ability to pay employees and suppliers. Mr. Vonnarat Tangkaravakoon, former acting CEO of STARK, expressed that while the main shareholder has fulfilled their duty, questions remain about how the affected companies will continue to operate and meet their financial obligations. This includes paying staff wages, fulfilling contracts, and obtaining credit from banks. The freezing of assets may hinder efforts to rehabilitate the business and pay off debts.
The SEC joins DIS to fight the STARK case, ordering to freeze the first set of 10 charges against money laundering – expanding more fraud test results Overseeing the financial transactions of STARK and its subsidiaries “Vonarat Tangkaravakoon ” petitioning to freeze company assets that affect business The SEC highlighted the freezing of assets including 9% of TOA Vonnarat’s shares. The Tangkaravakunyan family did not participate, ready to buy back TOA’s shares. SCBX revealed 2 billion in compensation.
Seizure of 10 assets, STARK scam
Mr revealed Thawatchai Pittayasophon, Acting Deputy Secretary General of the Office of the Securities and Exchange Commission (SEC) the progress of the action in the case of Stark Corporation Public Company Limited (STARK) yesterday (July 6) The SEC has filed the first complaint against 10 individuals and jurisprudence persons to the Department of Special Investigations (DSI) for prosecuting the manipulation of financial statements. and disclosure of false statements in the registration statement for the offering of debentures which is the initial information which is false from the beginning It is an act of fraud and deceit.
and sought approval from the SEC Board (SEC Board) by virtue of Section 267 of the Securities Act There was an order to freeze the assets of the first batch of 10 offenders for 180 days and asked the court to extend the period for another 180 days due to the crimes occurred which cause harm to the public interest. It appears that the damage value of STARK’s liabilities is more than 38,000 million baht and there are reasonable circumstances to believe that the offender will move or sell the property. and a ban on leaving the Kingdom for 15 days
Includes 1) STARK Company 2) Mr. Chanin Yensudchai 3) Mr. Vonnarat Tangkaravakoon 4) Mr. Chinawat Assavapokee 5) Mr. Sattha Jansettalert 6) Mr. Kittisak Jit Prasert-ngam 7) Phelps Dodge International (Thailand) Co, Ltd (PDITL) 8) Thai Cable International Co, Ltd (TCI) 9) Adisorn Songkhla Co, Ltd and 10) Asia Pacific Co, Ltd Drilling Engineering Co, Ltd.
At the same time, the SEC has also notified the prosecution under the Securities Act to the Anti-Money Laundering Office (AMLO), which is a predicate offence. According to the Anti-Money Laundering Act BE 2542 and its amendments Including being investigated to extend the consequences to other cases where corruption is suspected.
SEC sends a team to oversee a company’s transactions
Mr. Many people may wonder why the office The SEC has just exercised its power to seize assets. I want to clarify that The SEC has guidelines for enforcing such laws. with the consultation of the Office’s legal advice and there are steps to be taken that must be taken after the charge has been made
for seizing that property If someone complains to the SEC, we will consider that information. At the same time, while freezing the assets of various companies, the company can continue to do business. There will be a working group of SEC when considering the money to approve the statement It must be going out in good faith And it should not be money related to the misuse of benefits, which will release the money and property that Freeze gradually preserved. so that all accused companies can proceed which will be the force of the working group which can proceed immediately
More fraud checks
Regarding the question in the case of the creation of the STARK stock price by the company that gives false information that affects the stock price that has been increased And there are those who benefit. “Major shareholders” gradually sell large lots to make a profit. To begin with, I would like to inform you that the SEC is collecting evidence about unusual trading practices. by working and auditing with the Stock Exchange of Thailand If further fraud is found, further action will be taken.
In addition, for those involved in the STARK case, such as the auditor of a Thai listed company. The power that the SEC must approve, which has a process in place. If involved in wrongdoing Can proceed with license revocation The auditor in The SEC did not approve of that. The SEC does not have the authority to control but still works with the Federation of Accounting Professions I would like to inform that the evidence at this level has not yet found that the auditor was involved in wrongdoing.
prevent theft of property
Mrs. Pattanaporn Tripiphat Assistant Secretary General of the SEC added that The use of the power to freeze that property to prevent the handling of property in the process of the damage can bring information on the accusation of SEC to collect relevant evidence to sue for compensation This part is about the relationship between the victim and the person who damaged them in the transaction.
In case there is a question Some of the accused have already fled the country. I would like to inform that because the SEC has filed complaints under the Securities Law to the DSI. After this, the role of DSI researchers will have a follow-up process. by using international law to extradite The clarity must wait for the DSI to report further.
“I would like to emphasize that the SEC’s law enforcement process cannot be conducted or enforced spontaneously, or that being suspicious is not enough. Because it is a criminal law enforcement, therefore, the facts of the orders must be checked in the company. And find the evidence of the signer clearly before acting.
Pattanaporn said Mrs. Freezing Mr.’s assets. Vonnarat will include all assets Including the shares of TOA’s holding also by the process after confiscation of assets The SEC will continue to coordinate with the DSI. how to proceed from now on Because there is an attachment period of 180 days and the court can request an extension of another 180 days.
“We are confident that the evidence presented is sufficient for an indictment. But in terms of confidence that the case will reach the end or not. it must be DSI And try to help support the information with the DSI as much as possible.”
SEC petitioner company employee
On July 7, 2023, more than 300 employees of Phelps Dodge International (Thailand) Co., Ltd., a subsidiary of STARK, came to the SEC for clarification. After an order to freeze property due to fear that it will affect work and employment The agent The SEC clarified that Legal orders under Section 267 of the Securities and Exchange Act with an order to freeze that property Does not mean suspension of transactions usual. This means that the company’s work continues as usual However, the definition of the word “normal” or “abnormal” must bring information to be discussed with the SEC, which has an appointment on Monday, July 10. This month
Point to freeze the company that affects employees.
Mr. Vonnarat Tangkaravakoon, former acting CEO of Stark Corporation Public Company Limited or STARK, disclosed that after the SEC ordered the seizure of assets of Criminals accused in the STARK case involving 10 cases for 180 days. The main shareholder is considered to fulfill his duty without issue. But the freezing of assets of companies still doing business, from STARK, Phelps Dodge Inter, Adisorn Songkhla and Thai Cable, raises questions about how these companies will continue. pays staff wages Can I pay suppliers? If not, the factory must be stopped for 180 days, will it cause the distribution contract to be broken or not?
“The more Phelps Dodge sold the wires to the Electricity Authority. If the contract cannot be performed. Blacklisted How to go next? And the first group of people in trouble are directly Company employees who have to be fired and partners who have already billed or produced goods, sent them goods but still not received money Employees are still preparing to come found a new job. Partners stop dating.
Next, the problem is The bank that lends directly to Phelps Dodge. Previously, the bank was negotiating with major shareholders. Mr. Vonnarat guarantees a debt of 20,000 million baht, with plans to take Phelps Dodge going into business rehabilitation So that the bank can give credit to breath during the sale of various businesses to get money to pay off debt.
But being seized in this way means that he will not be able to bring it to rehabilitate a business. You cannot borrow money to run the factory because if you wait 180 days, the confiscation time expires. These companies have gone to ruin. Listed completely by electricity
TOA clarified that it was not affiliated with STARK.
While TOA Paint (Thailand) Public Company Limited or TOA of the Tangkaravakun family held an analyst meeting in July. From Mr. Jatupat Tangkaravakoon, CEO of TOA, updated the business picture. and answer questions about the STARK case, confirming that TOA is not connected to STARK’s business. There is only about 3 million baht in transactions between them, which is the sale of construction paint. and make a little backyard system
Ready to confirm that there is no interest in buying STARK assets if they have to be liquidated because if there is interest, they would have bought a long time ago. And if Mr Vonnarat has to sell TOA shares, which he currently holds 9% for any reason. The other main shareholders (Tangkaravakoon family) are ready to buy them.
At the moment, Mr. Vonnarat holds 182,600,000 shares of TOA, worth 4,747 million baht.
SCB went a bit astray.
Mr revealed Arthit Nanthawittaya, CEO of SCB X Public Company Limited, in the case of giving credit to STARK, which has no effect on Siam Commercial Bank. Because the credit line is relatively small, about 2,000 million baht compared to the large credit portfolio that exists at 1 trillion baht and compared to the debt of retail loans which is over 10 billion baht.
“Siam Commercial Bank as a creditor We continue to manage STARK in accordance with the same procedures as other commercial bank creditors in accordance with the legal process. We see that we offer retail loans. Tens of millions of bad debts Compared to this one, the limit is very small. Lending will inevitably be hit by some crossfire”
Damaged Bualuang Asset Management Co., Ltd. 2 billion
Mr. Peerapong Jirasevijinda CEO of Bualuang Asset Management (BBLAM) said that Bualuang is another management Company that has invested in STARK stocks, which, as reported, has sold out all its shares. The fund invests in STARK stocks, each of the 4 funds with an estimated damage value of about 2,000 million baht, the average damage per fund is about 300-700 million baht per fund.
In this regard, in relation to litigation for compensation is considered a rather delicate matter And it must be sued jointly on behalf of the fund, not on behalf of the asset management company, and of course, it will have to the asset management company acts as the representative of the unit-holders when suing the injured person.
Asset management company called “Deloitte” to explain
Mrs Chavinda Hanratanakul, Managing Director of Krung Thai Asset Management (KTAM), as president of the Association of Investment Management Companies (AIMC), said that the association had called a meeting this morning (July 7) to discuss ways forward in the case of STARK shares, with a preliminary conclusion that Legal counsel has suggested that When suing, if he is a minor, it will be easier to prosecute. Because there are many people Because if you want to sue on behalf of Asset management companies, which are not very large industries, may not have any weight in court. Therefore, other means of prosecution must be used instead.
The legal case must be classified as equity shares, debentures and PP shares or private placement offers. because it requires a group of people to sue with the same damage and that is why it has to be separated because it will move forward faster and pressure the court
As for the auditor, there is still no evidence to blame or convict him. but would like to call Deloitte Touche Tohmatsu Jaiyos Audit Company Limited, acting as an auditor come out to discuss or clarify various doubts
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