Following a referral from the Stock Exchange of Thailand (SET) in 2021 and the SEC’s further investigation, the findings and evidence revealed that during March – May 2021 before the disclosure to the SET on 12 May 2021 at 17.00 hours, AIE’s and AI’s first quarter 2021 operating results showed a significant decline in net earnings compared to both the preceding quarter and the same quarter of the preceding year. This information had a negative impact on the share prices of AIE and AI. The offenses committed were as follows:   

In the case of AIE
During the period between 15 March – 12 May 2021, there were six offenders as follows:
          (1) Miss Pimwan Thareratanavibool, Managing Director and Director of AIE: As a person knowing or possessing inside information, she sold AIE shares through her own trading account using such information – constituting an offense of insider trading;  
          (2) Mr. Narong Thareratanavibool, Chairman and CEO of AIE: As a person knowing or possessing inside information, he contacted and negotiated with another person to purchase AIE shares via a big lot transaction from Mr. Noppol Thareratanavibool (his son), who then unusually sold a large volume of shares through his own account – constituting an offense of disclosing inside information while he knew or should have known that it might be used to seek benefits from securities trading;
          (3) Mr. Noppol Thareratanavibool, son of Narong: After being contacted regarding a big lot sale by a person arranged by Narong, he sold an unusually large volume of AIE shares through his own account – constituting an offense of insider trading;
          (4) Mr. Kovit Thareratanavibool, a representative of AI (a shareholder in AIE): Attending management meetings at AIE as an insider, he sold both his own shares via his trading account and those held in Mrs. Jarunee Worakitjanuwat’s account (his mother-in-law), using inside information – constituting an offense of insider trading. He was also believed to have disclosed inside information to Mr. Pongsapak Thareratanavibool (his son), who then traded based on this information – constituting an offense of non-public disclosure to other persons while he knew or should have known that the recipient of such inside information would likely use such information to seek benefits from securities sale;
           (5) Mr. Pongsapak Thareratanavibool, son of Kovit: As a person who knew or possessed inside information, he sold an unusually large volume via his own trading account, and was believed to have received inside information from Kovit (his father) – constituting an offense of insider trading; 
          (6) Mrs. Jarunee Worakitjanuwat, mother-in-law of Kovit: She allowed Kovit to use her securities account for selling AIE shares based on inside information – constituting an offense of aiding or facilitating another person’s commission of offense.

In the case of AI
During the period between 16 March – 12 May 2021, there were three offenders as follows:  
          (1) Mr. Thanit Thareratanavibool, Chief Executive Officer and Chief Financial Officer of AI: Knowing or possessing inside information, he sold AI shares using such inside information in his own trading account – constituting an offense of insider trading;
          (2) Mr. Kovit Thareratanavibool, Director and Executive Director of AI: Knowing or Possessing inside information, he sold AI shares in his own trading account and those in the trading account of Mr. Chonlasin Worakitjanuwat (his brother-in-law), using such inside information – constituting an offense of insider trading;
          (3) Mr. Chonlasin Worakitjanuwat, Kovit’s brother-in-law: He allowed Kovit to use his trading account to sell AI shares using inside information known by Kovit – constituting an offense of aiding or facilitating other persons’ commission of offense.

The actions of the eight offenders above constitute an offense for selling securities while knowing or possessing inside information or disclosing inside information to other persons when they knew or should have known that the recipients may use such inside information to seek benefits from securities trading or aiding or facilitating other persons in their commission of offense, as specified in Section 242(1) and Section 242(2), in conjunction with Section 243(1), Section 244(3) and Section 315, which carry penalties under Section 296 and Section 296/2, as well as civil sanctions under Section 317/4 and Section 317/5 of the Securities and Exchange Act B.E. 2535 (1992), as the case may be.  

The Civil Sanction Committee (CSC) has therefore resolved to impose civil sanctions on the eight offenders, requiring them to pay civil penalties, compensation at an equal amount to the benefits received or that would have been received, and reimbursements of investigative expenses incurred by the SEC, Additionally, they are barred from serving as director or executive of securities issuing companies or securities companies. The civil sanctions are as follows:  
          (1) Miss Pimwan Thareratanavibool is required to pay a civil penalty, compensation at an equal amount to the benefit received or that would have been received, and a reimbursement of investigative expenses incurred by the SEC, totaling 1,076,852 baht. She is also barred from serving as director or executive of securities issuing companies or securities companies for a period of 12 months;
          (2) Mr. Narong Thareratanavibool is required to pay a civil penalty and a reimbursement of investigative expenses incurred by the SEC, totaling 609,352 baht. He is also barred from serving as director or executive of securities issuing companies or securities companies for a period of 14 months;
           (3) Mr. Noppol Thareratanavibool is required to pay a civil penalty and a reimbursement of investigative expenses incurred by the SEC, totaling 609,352 baht. He is also barred from serving as director or executive of securities issuing companies or securities companies for a period of 12 months;
          (4) Mr. Kovit Thareratanavibool is required to pay a civil penalty, compensation at an equal amount to the benefit received or that would have been received, and reimbursements of investigative expenses incurred by the SEC in the case of AIE at the amount of 5,511,135 baht, and in the case of AI at the amount of 9,187,421 baht, totaling 14,698,556 baht. He is also barred from serving as director or executive of securities issuing companies or securities companies in the case of AIE for a period of 28 months, and in the case of AI for a period of 14 months, or a total period of 42 months;   
           (5) Mr. Pongsapak Thareratanavibool is required to pay a civil penalty, compensation at an equal amount to the benefit received or that would have been received, and a reimbursement of investigative expenses incurred by the SEC, totaling 759,352 baht. He is also barred from serving as director or executive of securities issuing companies or securities companies for a period of 12 months;   
           (6) Mrs. Jarunee Worakitjanuwat is required to pay a civil penalty and a reimbursement of investigative expenses incurred by the SEC, totaling 609,352 baht. She is also barred from serving as director or executive of securities issuing companies or securities companies for a period of nine months;   
           (7) Mr. Thanit Thareratanavibool is required to pay a civil penalty, compensation at an equal amount to the benefit received or that would have been received, and a reimbursement of investigative expenses incurred by the SEC, totaling 63,815,705 baht. He is also barred from serving as director or executive of securities issuing companies or securities companies for a period of 20 months;
          (8) Mr. Chonlasin Worakitjanuwat is required to pay a civil penalty and a reimbursement of investigative expenses incurred by the SEC, totaling 718,705 baht. He is also barred from serving as director or executive of securities issuing companies or securities companies for a period of nine months.

The civil sanctions, as imposed by the CSC, will take effect when the offenders sign a letter of consent to comply. Otherwise, the SEC will submit the case to the public prosecutor for filing a lawsuit in the Civil Court to seek an imposition of civil sanctions with the maximum applicable statutory penalties, which shall not be lower than the civil sanctions specified by the CSC. 

In all cases, civil penalties and compensations for the benefits received or that would have been received from committing the offenses shall be remitted to the Ministry of Finance as public revenue.  

Notes:

- As of 5 March 2021, AI held 61.77 percent of AIE shares.
* Section 317/1 of the Securities and Exchange Act B.E. 2535 (1992), as amended by the Securities and Exchange Act (No. 5) B.E. 2559 (2016), stipulates that criminal offenses under the provisions of the said Act may be subject to civil sanctions against the offender. 

Details of civil sanctions and associated procedures are available at: https://www.sec.or.th/EN/pages/lawandregulations/civilpenalty.aspx