According to referrals from the Stock Exchange of Thailand (SET) and the SEC’s further investigation, it was revealed that during the months of December 2017 – May 2018, two groups of persons engaged in BM trading orders in a manner consistent with price manipulation. These activities occurred in different time periods. The investigation also revealed no detectable connection between the two groups. A summary of their offenses is as follows: 

The first incident: Two offenders, namely (1) Mr. Luacha Bho-ob and (2) Mr. Sitthichai Limsowan, as business partners, placing trading orders around the same time at the same or similar prices and/or volumes, and matched the BM share trading orders in large volumes on four business days on 2 February 2018 and 6, 12 and 13 March 2018. Their actions misled other persons regarding the prices or trading volumes of the securities, liable to be offenses under Section 244/3(1) in conjunction with Section 244/5(2)(3) of the Securities and Exchange Act B.E. 2535 (1992) (SEA), in conjunction with Section 83 of the Criminal Code, subject to penalties under Section 296, Section 296/2 and civil sanctions under Section 317/4 and Section 317/5 of the SEA.  

The Civil Sanction Committee (CSC) has resolved to impose civil sanctions* on the two offenders above, requiring them to make payments for the civil monetary penalties and the reimbursements of investigative expenses incurred by the SEC in the amount of 678,666 baht each, and prohibiting them from trading securities or derivatives for a period of six months each, and barring them from serving as directors or executives of securities issuing companies or securities companies for a period of 12 months each.  

The second incident: Four offenders, having personal or business relationships directly or indirectly through related persons, namely: (1) Mr. Thanaris Pornpattanajamsai, (2) Miss Audcharapron Radchanajun, and (3) Mr. Saksumit Samornpitakul, colluded to send trading orders of BM shares in a manner consistent with share price manipulation during 27 March – 28 May 2018, such as accepting the best bid offers, executing bid orders with a small volume of shares to push up the share prices, matching trading orders among themselves, and making the closing prices. The commission of these offenses were assisted by (4) Mr. Suppharoek Kwaennoi, who opened a banking account for accepting money transfers from other investors and forwarding such transfers to other offenders for trading the BM shares during such time periods above, causing the general public to misunderstand the securities prices or trading volumes, and sending trading orders continuously with the intention to cause the share prices or trading volumes to be inconsistent with normal market conditions. Their actions were liable to be offenses under Section 244/3(1)(2) of the SEA , in conjunction with Section 83 of the Criminal Code or Section 244/3(1)(2) in conjunction with 315 of the SEA, as the case may be, subject to the penalties under Section 296, Section 296/1 and Section 296/2 and civil sanctions under 317/4 and Section 317/5 of the SEA. 

The CSC has therefore resolved to impose civil sanctions on the four offenders above, as summarized below:

    (1) Thanaris, Audcharapron and Saksumit are required to pay civil monetary penalties, compensations in the amounts equal to the benefits received or should have been received, and reimbursements of investigative expenses incurred by the SEC in the amounts of 2,097,003 baht, 2,952,653 baht, and 1,005,628 baht, respectively. Each is also prohibited from trading securities or derivatives for a period of 11 months and barred from serving as director or executive of any securities issuing company or securities company for a period of 22 months each;   

    (2) Suppharoek is required to pay a civil monetary penalty, a reimbursement of investigative expenses incurred by the SEC in the amount of 589,333 baht, is prohibited from trading securities or derivatives for a period of 11 months, and is barred from serving as director or executive of any securities issuing company or securities company for a period of 22 months. 

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

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Remark: * Section 317/1 of the Securities and Exchange Act B.E. 2535 (1992), as amended by the SEA (No. 5) B.E. 2559 (2016), prescribes that a civil sanction can be imposed on an offender committing a criminal offense under the SEA.

Details of civil sanctions and associated procedures are available at:

https://www.sec.or.th/TH/Pages/LawandRegulations/CivilPenalty.aspx