In auditing CMO’s financial statements for fiscal year 2023, the auditor identified irregularities and reported them to the SEC in October 2023 in accordance with Section 89/25 of the Securities and Exchange Act B.E. 2535 (1992)(SEA). The audit highlighted a questionable investment transaction related to the purchase of shares in the subsidiary, MTS. Following the SEC’s order, a special audit was conducted. CMO submitted the results of the special audit to the SEC in February 2024.

The SEC later conducted an investigation into the transaction and found reasonable evidence that the former directors and executives of CMO – Mr. Kitisak Jampathipphong and Mr. Kitti Phuathavornskul – as well as their associates – Mr. Suradej Tangsatienchaiyakul and T Money (Thailand) Co., Ltd. – engaged in dishonest conduct through the investment in the purchase of MTS shares. It was discovered that Kittisak and Kitti used T-Money to purchase MTS shares from the original shareholders at a cost price of only 400,000 baht, and then resold those shares to CMO for 65 million baht, a price significantly higher than the actual market value. It was also found that both Kittisak and Kitti benefited from the profit margin, arising from this share sale, causing damage to CMO. Such misconduct constitutes an offense under the SEA.

The actions of the persons and juristic person above constitute the offenses under Paragraph 2 of Section 281/2, in conjunction with Section 89/7 and Section 307, Section 311, Section 313 and Section 315 of the SEA, in conjunction with Section 83 and Section 86 of the Criminal Code, as the case may be. The SEC has therefore filed this criminal complaint against the four persons with the ECD for consideration of further legal action. Additionally, the SEC has reported this action to the AMLO since the offenses in this case also constitute a predicate offense under the Anti-Money Laundering Act, as amended. 
 
This criminal complaint has resulted in the persons above liable to have untrustworthy characteristics and are therefore barred from serving as a director or executive in securities issuing companies and listed companies throughout the duration of the legal proceedings, starting from the SEC’s filing date of the criminal complaint with the ECD.
 
In any case, after filing a criminal complaint, the criminal proceedings continue with the investigation by the inquiry official, the prosecution by the public prosecutor, and the judgment by the Court of Justice, respectively. The SEC will monitor the progress of the legal proceedings in this case and collaborate fully with relevant authorities to support law enforcement under the SEA.