Bangkok, 30 December 2020 – SEC announced that the Appeal Court has rendered a judgement amending the judgement of the Civil Court in the case of price manipulation of Pico (Thailand) Public Company Limited (PICO) shares, by ordering the defendant, Mr. Surin Banyongponglert, to pay 24,538,815 baht plus the annual interest rate of 7.5 percent – starting from the case filing date (26 December 2018) until the date of completing the full payment – to SEC, the plaintiff. In addition, Surin is prohibited from trading securities on the Stock Exchange of Thailand or over-the-counter trading centers or entering into derivatives contracts on the Derivatives Exchange for three years, as from the acknowledgement date of this judgement. He is also banned from holding the position of director or executive at securities issuing companies or securities companies for five years, as from the acknowledgement date of this judgement, except the part confirming the judgement of the Court of First Instance.
Earlier, the Civil
Sanction Committee decided to impose civil sanctions on Mr. Surin Banyongponglert in the case where he had sent trading orders
of PICO shares in the manner of price manipulation. However, Surin did not
agree to comply with the civil sanctions. Later, on 26 December 2018, the
public prosecutor filed a lawsuit against Surin with the Civil Court, as
requested by SEC, in order for the Court to impose the civil sanctions on Surin
in the Black Case No. Por. 7563/2561 between SEC as plaintiff and Mr. Surin
Banyongponglert as defendant.
On 16 October
2019, the Civil Court rendered a judgement in the Red Case No. Por. 5396/2562, wherein the defendant was required to pay (1) a civil
penalty, 1.25 times the benefits that the defendant received or would have
received from committing the offense at the amount of 10,180,283.75 baht, (2) a compensation
for the benefits that the defendant received or would have received from committing
the offense at the amount of 8,144,227 baht, and (3) a reimbursement of the investigative expenses incurred
by the plaintiff at the amount of 106,134 baht. The defendant was thus required to pay the total
amount of 18,430,644.75 baht, plus the annual interest rate of 7.5 percent of the said principal, as from the case filing date (26 December 2018)
until the date of completing the total payment to the plaintiff. In addition,
the defendant was prohibited from trading securities on the Stock Exchange or over-the-counter
trading centers or entering into derivatives contracts on the Derivatives
Exchange for one year and six months, and banned from holding the position of
director or executive at securities issuing companies or securities companies
for three years, starting from the judgement date of the Civil Court.
Later, on 15
December 2020, the Appeal Court rendered a judgement* amending the Civil
Court’s judgement, by requiring the defendant to pay (1) a civil penalty, twice
the amount of the benefits that the defendant received or would have received
from committing the offense, which is the highest legal penalty specified by
law, at the amount of 16,288,454
baht, (2) a compensation for the benefits that the defendant received or would
have received from committing the offense at the amount of 8,144,227 baht, and (3) a reimbursement of the investigative expenses
at the amount of 106,134 baht. The defendant is thus
required to pay the total amount of 24,538,815
baht plus the annual interest rate of 7.5 percent,
as from the case filing date until the total payment is fully paid to the
plaintiff. In addition, the defendant is prohibited from trading securities on
the Stock Exchange or over-the-counter trading centers or entering into
derivatives contracts on the Derivatives Exchange for three years as from the
acknowledgement date of the judgement, and banned from serving as director or
executive at securities issuing companies or securities companies for five
years, as from the acknowledgement date of the judgement (15 December
2020). The judgement excludes the part confirming the judgement of the Court of
First Instance. This case is final in accordance with the judgement of the
Appeal Court.
SEC Secretary-General Ruenvadee Suwanmongkol said: “This is a share
price manipulation case proceeded under civil sanctions, filed with the Civil
Court on 26 December 2018. The Appeal Court passed the final ruling on 15
December 2020. If the defendant fails to comply with the Appeal Court’s
judgement, SEC shall proceed with legal execution in accordance with the legal
process in due course**.”
In
any case, the civil penalty and the compensation for the benefits received from
the commission of the offense shall be submitted to the Ministry of Finance as
public revenue.
___________________
Remarks:
*
Black Case No. 1330/2563 and Red Case
No. 13462/2563
** SEC requested the Civil Court to issue a writ of
execution to seize or freeze Surin’s assets for debt repayment in accordance
with the Civil Court’s judgement on 18 November 2019 (SEC News No. 167/2019
dated 18 November 2019). https://www.sec.or.th/TH/Pages/News_Detail.aspx?SECID=7826&NewsNo=167&NewsYear=2562&Lang=TH