According
to referrals from the Stock Exchange of Thailand (SET) and the SEC’s further
investigation, there were facts and evidence leading to believe that the actions
of the three persons above were liable to be offenses related to insider
trading that caused the rise of the CHG share price. The inside information
that Dr. Kumpol became aware of or possessed was CHG’s operating results for
the third quarter of 2019, which recorded a significant increase in net
earnings due to the income of medical service fees based on risk burdens from
the Social Security Office, which was higher than the company’s estimate. The
findings showed that after Dr. Kumpol Plussind (holding the positions of managing
director and director at the time) became aware of the inside information, he purchased
the CHG shares through the securities trading accounts of Krit and Kullapa
before CHG disclosed the inside information to the SET on 15 November
2019.
Dr. Kumpol’s insider trading of CHG shares was an offense under Section 242(1)
in conjunction with Section 243(1), subject to the
penalties under Section 296 and Section 296/2 of the Securities and Exchange Act B.E. 2535 (1992) (SEA).
By allowing Dr. Kumpol to use their securities trading accounts, Krit
and Kullapa were deemed an aider to the insider trading of CHG shares under
Section 242(1) in conjunction with Section 315, subject to penalties under
Section 296 and Section 296/2 of the
SEA.
The Civil Sanction Committee has decided to impose civil sanctions* on
the three offenders above through the imposition of civil penalty, compensation
at an equal amount to the benefit received or should have been received,
reimbursement of the investigative expenses incurred by the SEC, and bar from
serving as a director or executive in a securities issuing company or
securities company, as summarized below:
(1) Dr. Kumpol shall pay a civil
penalty, a compensation at an equal amount to the benefit that should have been
received, and a reimbursement of the investigative expenses incurred by the
SEC, at the total amount of 6,873,854 baht, and shall be
barred from serving as a director or executive for 14 months;
(2) Krit and
Kullapa shall separately pay a civil penalty and a
reimbursement of the investigative expenses incurred by the SEC, at a total
amount of 598,082 baht each, and shall be barred from
servicing as director or executive for nine months each.
The suspension period for the offenders serving as a director or
executive in the above cases will commence upon the date when the offenders
affix their signature on the letter of consent which
specifies civil sanctions to comply with the civil sanctions determined by the
Civil Sanction Committee. If any of them declines to give consent for the civil
sanctions, the SEC will notify the public prosecutor in writing for filing the
case with the Civil Court to seek a civil sanction with a maximum penalty as
prescribed by law which shall not be lower than the penalties specified by the
Civil Sanction Committee.
In all cases, the civil penalties and the compensations at an equal
amount to the benefit received from committing the offenses shall be remitted
to the Ministry of Finance as public revenue.
_________________________
** Section 317/1 of the SEA B.E. 2535
(1992), as amended by the SEA (No. 5) B.E. 2559 (2016), prescribes that the
criminal offenses under the law shall be deemed the offenses whereby civil
sanctions may be imposed on the offenders.
Details of civil sanctions and associated procedures are available at: https://www.sec.or.th/TH/Pages/LawandRegulations/CivilPenalty.aspx