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SEC imposes civil sanctions on four offenders in TAPAC manipulation case



Thursday 9 November 2017 | No. 112 / 2017



Bangkok, 9 November 2017 ? The Civil Sanction Committee has imposed civil sanctions on four persons, namely (1) Mr. Surachai Suwanthanakul, (2) Mrs. Orthai Sae-tung, (3) Mr. Somsak Saravutwattanakorn, and (4) Ms. Phichayahia Phichayarom (formerly named Suthasinee Nantapakprasit), for manipulating the share price of Tapaco Public Company Limited (TAPAC). The total fines are 3,135,871.25 baht.

According to the SET referral and the SEC further investigation, it has been found that during 25 February - 17 March 2015, Surachai, Somsak and Orthai, who were clients of Phichayada (at the time working for a securities company as an investment consultant), jointly manipulated the TAPAC share price by executing trading orders of such share in such a manner that stimulated the share's movements, and arranging low-price matching for the trading activities within their own group. Such transactions misled other investors into believing that TAPAC shares were traded in high volume and its price was changed. As a result, the trading of TAPAC shares contradicted normal market conditions.

The manipulation of the TAPAC shares by the aforesaid persons is deemed an offense under Section 243(1) in conjunction with Section 244, and liable to the penalties under Section 296, Section 296/1 and Section 296/2 of the Securities and Exchange Act B.E. 2535, in conjunction with Section 83 of the Penal Code. 

The four offenders have agreed to the civil sanctions imposed by the Civil Sanction Committee; Surachai has paid a fine of 1,635,871.25 baht while Orthai, Somsak and Phichayada have paid a separate fine of 500,000 baht each. The total fines of 3,135,871.25 baht will be submitted to the Ministry of Finance as public revenue. 

In addition to the civil sanctions, the SEC has banned Surachai and Somsak from holding a director or executive position at any issuing and listed companies* for two years and one year, respectively. 

 ___________________________


*Notification of the Securities and Exchange Commission No. Kor Jor. 3/2560 Re: Determination of Untrustworthy Characteristics of Company Directors and Executives dated 23 January 2017.


 












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No. 112 / 2017 Thursday 9 November 2017
SEC imposes civil sanctions on four offenders in TAPAC manipulation case


Bangkok, 9 November 2017 ? The Civil Sanction Committee has imposed civil sanctions on four persons, namely (1) Mr. Surachai Suwanthanakul, (2) Mrs. Orthai Sae-tung, (3) Mr. Somsak Saravutwattanakorn, and (4) Ms. Phichayahia Phichayarom (formerly named Suthasinee Nantapakprasit), for manipulating the share price of Tapaco Public Company Limited (TAPAC). The total fines are 3,135,871.25 baht.

According to the SET referral and the SEC further investigation, it has been found that during 25 February - 17 March 2015, Surachai, Somsak and Orthai, who were clients of Phichayada (at the time working for a securities company as an investment consultant), jointly manipulated the TAPAC share price by executing trading orders of such share in such a manner that stimulated the share's movements, and arranging low-price matching for the trading activities within their own group. Such transactions misled other investors into believing that TAPAC shares were traded in high volume and its price was changed. As a result, the trading of TAPAC shares contradicted normal market conditions.

The manipulation of the TAPAC shares by the aforesaid persons is deemed an offense under Section 243(1) in conjunction with Section 244, and liable to the penalties under Section 296, Section 296/1 and Section 296/2 of the Securities and Exchange Act B.E. 2535, in conjunction with Section 83 of the Penal Code. 

The four offenders have agreed to the civil sanctions imposed by the Civil Sanction Committee; Surachai has paid a fine of 1,635,871.25 baht while Orthai, Somsak and Phichayada have paid a separate fine of 500,000 baht each. The total fines of 3,135,871.25 baht will be submitted to the Ministry of Finance as public revenue. 

In addition to the civil sanctions, the SEC has banned Surachai and Somsak from holding a director or executive position at any issuing and listed companies* for two years and one year, respectively. 

 ___________________________


*Notification of the Securities and Exchange Commission No. Kor Jor. 3/2560 Re: Determination of Untrustworthy Characteristics of Company Directors and Executives dated 23 January 2017.