Bangkok, March 16, 2016 – The Criminal Fining Committee has imposed a total fine of 25,322,064.39 on four offenders for using insider information to purchase ordinary shares and warrants of Siam Global House Public Company Limited (GLOBAL).
The four offenders are: (1) Witoon Suriyawanakul, (2) Kunnatee Suriyawanakul, (3) Apilas Suriyavanakul, and (4) Kriangkai Suriyawanakul.
The SEC, meanwhile, has filed a criminal complaint against two other offenders, namely (1) Surasak Chuntori, and (2) Ekkamon Chuntori, for using insider information to purchase GLOBAL shares.
Following a referral from the Stock Exchange of Thailand, the SEC’s further investigation has revealed that Witoon and the three other persons in the same group purchased GLOBAL shares and GLOBAL-W warrants and gained benefits from such transactions. Witoon, who was chairman of the management committee of GLOBAL, had the decision making power over the terms and conditions of an agreement between GLOBAL and SCG Distribution Co., Ltd. (SCG), a wholely owned subsidiary of The Siam Cement Public Company Limited, with regard to SCG’s plan to hold at least 30 percent of GLOBAL’s total voting shares by purchasing GLOBAL ordinary capital shares through a private placement. In this regard, SCG would make a partial offer of GLOBAL shares, which was expected to increase business strength for GLOBAL.
The aforementioned agreement was publicly disclosed on 27 August 2012. However, it was found that during 29 June – 23 August 2012 Witoon took advantage of the then non-public information to purchase 8,022,881 GLOBAL shares and 3,500,700 GLOBAL-W warrants through the trading accounts of several other persons with whom he had close relationship. In this regard, Kunnatee, Apilas and Kriangkai assisted him with his purchases and clearing transactions.
In the case of Surasak, the evidence presented a ground to believe that he had known of the facts concerning such joint venture by virtue of his position as an audit committee member and independent director of GLOBAL. Evidently, he purchased 75,000 GLOBAL shares on 22 August 2012 through the trading account of Ekkamon.
Any securities purchase that makes use of a non-public fact that is material to potential change in the securities price is deemed to be taking an unfair advantage of other people. Such action is in violation of Section 241 and liable to the penalties under Section 296 of the Securities and Exchange Act of 1992.
The misconducts of Witoon, Kunnatee, Apilas and Kriangkai were in violation of Section 241. The Criminal Fining Committee has imposed a fine of 24,322,064.40 baht on Witoon, and a separate fine of 333,333.33 baht on each of the other three persons for aidding and abetting in the case.
Surasak and Ekkamon refused to enter the criminal fining process. The SEC, therefore, filed a criminal complaint with the Department of Special Investigation (DSI) for further legal proceedings. As a result, Surasak is deeemed to possess untrustworthy characteristics and therefore banned from holding the positions of director and executive of any securities issuing company or listed company as long as he is subject to the complaint and legal action.
In any case, filing a criminal complaint commences the criminal justice administration whereby the consideration whether a defendant is guilty will be proceeded by the DSI and the public prosecutor, and the court will judge the case, respectively.