Following a referral from the Stock Exchange of Thailand (SET) in 2022 and the SEC’s further investigation, the uncovered facts and evidence led to the belief that Mr. Pongsak Lothongkam, who at the time of the incident was a major shareholder with more than 50% ownership and served as an advisor to SVI, was responsible for setting business strategies and attended important meetings of SVI. He was a person who knew or possessed insider information regarding SVI’s performance in the third quarter of 2021, which showed a net profit of 520.52 million baht—a significant increase compared to both the previous quarter of the same year and the corresponding financial period in 2020. This information had a positive impact on SVI’s stock price. Mr. Pongsak Lothongkam had purchased SVI shares before SVI disclosed this insider information to the SET on 10 November 2021, at 19:09 hours, resulting in his benefit from the increase in SVI’s stock value after the information was made public through the SET.

Mr. Pongsak Lothongkam’s action constitutes an offense for buying securities while knowing or possessing inside information as specified in Section 242(1) in conjunction with Section 243(1), Section 243(2) and Section 243(3), which carries 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). 

The Civil Sanction Committee (CSC) has therefore resolved to impose a civil sanction* on Mr. Pongsak Lothongkam, requiring him to pay a civil penalty, a compensation at an equal amount to the benefit received, and a reimbursement of investigative expenses incurred by the SEC, totaling 123,337,594 baht. He is also prohibited from serving as director or executive in securities issuing companies or securities companies for 29 months.   

The civil sanction, as imposed by the CSC, will take effect when the offender signs 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 sanction with the maximum applicable statutory penalties, which shall not be lower than the civil sanction specified by the CSC. 

In all cases, civil penalties and 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 Securities and Exchange Act B.E. 2535 (1992), as amended by the Securities and Exchange Act (No. 5) B.E. 2559 (2016), allows for civil sanctions to be imposed for criminal offenses under this Act.   

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