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SEC imposes civil sanctions on 12 offenders for manipulating SCN share prices



Thursday 28 March 2024 | No. 69 / 2024


Bangkok, 28 March 2024 – The Securities and Exchange Commission (SEC) has revealed the imposition of civil sanctions on 12 offenders for manipulating share prices of Scan Inter Public Company Limited (SCN), requiring them to pay collective civil monetary penalties in the total amount of 28,223,311 baht and prohibiting them from trading securities and derivatives or serving as directors or executives for specified periods.

According to case referrals from the Stock Exchange of Thailand (SET) and the SEC’s further investigation, it was revealed that during 23 August and 2 November 2018, the 12 offenders, namely (1) Mr. Chanon Wangtal, (2) Miss Anchada Teerapongvisanuporn, (3) Miss Montika Mongkolnavin, (4) Mrs. Patcharavalai Jayapani, (5) Mr. Pichet Permsubhirunya, (6) Miss Titanun Runruengjai, (7) Miss Paranee Mekdumrongsang, (8) Miss Phantipa Netiphat, (9) Mr. Narut Wiwattanakrai, (10) Mr.Tan Vutithum, (11) Mr. Natpapat Keschaimongkol, and (12) Mr. Supasit Pokinjaruras, – having business and/or personal relationships and/or connections in relation to placing, knowing about or colluding to place trading orders and/or allowing other persons to use securities trading accounts had placed SCN share trading orders in a consistent and supportive manner so as to push up the share prices through splitting orders, matching orders among themselves, executing orders in a manner of obstructing trading activities of other persons or manipulating the closing share prices on certain days, with the intention to cause the SCN share prices and trading volume to be inconsistent with the normal market conditions. The SCN share prices compared to the period of 30 business days before those actions increased by 35.87 percent, from 3.68 baht to the highest of 5 baht per share and its average daily trading volume rose more than 15 times, from 0.5 million to 8.47 million shares.

The actions of the persons above are deemed SCN share price manipulation offenses under Section 244/3, in conjunction with Sections 244/5 and 244/6, as the case may be, subject to the liabilities under Sections 296, 296/1 and 296/2 of the Securities and Exchange Act B.E. 2535 (1992) (SEA), in conjunction with Section 83 of the Penal Code.

The Civil Sanction Committee (CSC) has resolved to impose civil sanctions* on those 12 offenders, as summarized below:   

          (1) The offenders are required to pay civil penalties, compensations in the amount equal to the benefits received or would have been received, reimbursements of investigative expenses incurred by the SEC, as follows: Chanon in the amount of 6,650,867 baht, Anchada in the amount of 584,756 baht, Montika in the amount of 984,782 baht, Patcharavalai in the amount of 813,878 baht, Pichet in the amount of 604,132 baht, Titanun in the amount of 3,527,257 baht, Paranee in the amount of 574,594 baht, Phantipa in the amount of 4,763,272 baht, Narut in the amount of 5,881,582 baht, Tan in the amount of 1,165,997 baht, Natpapat in the amount of 2,150,762 baht and Supasit in the amount of 521,432 baht;

          (2) Nine offenders, namely Chanon, Anchada, Montika, Patcharavalai, Pichet, Titanun, Poranee, Phantipa and Natpapat, are prohibited from trading securities or derivatives for a period of 14 months each and are barred from serving as directors or executives in any securities issuing companies or securities companies for a period of 28 months each. Three offenders, namely Narut, Tan and Supasit, are prohibited from trading securities or derivatives for a period of 20 months each and are barred from serving as directors or executives in any securities issuing companies or securities companies for a period of 40 months each.

The civil sanctions in (2), as imposed by the CSC, will take effect when the offenders sign the letters of consent, agreeing to comply with the civil sanctions. In the event that any offender refuses to give consent to the sanctions, the SEC will submit the case in writing to the public prosecutor for filing a lawsuit in the Civil Court to seek the maximum applicable civil sanctions, which shall not be lower than those specified by the CSC in (1) and (2). 

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

_________________________

 

Remark: 
* 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 this Section 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/EN/pages/lawandregulations/civilpenalty.aspx






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