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The Appeal Court sentences the offender in the case of IFEC insider trading to the highest legal penalty



Wednesday 6 January 2021 | No. 4 / 2021


Bangkok, 6 January 2021 – The Securities and Exchange Commission (SEC) has announced that the Appeal Court has rendered a judgement opposing the judgement of the Civil Court in the case of insider trading of Inter Far East Energy Corporation Public Company Limited (IFEC) shares, by ordering the defendant, Mr. Suphanan Rittiphairoj, to pay the total amount of 31,926,822.72 baht plus the annual interest rate of 7.5 percent – starting from the case filing date (27 December 2018) until the date of completing the full payment – to SEC, the plaintiff.

The Civil Sanction Committee decided to impose a civil sanction on Mr. Suphanan Rittiphairoj, IFEC director and executive at the time of the offense, in the case where he had used inside information to sell IFEC shares, to pay civil penalty and compensation for the benefits gained from committing the offense. However, Suphanan did not agree to comply with the civil sanction. Later, on 27 December 2018, the public prosecutor filed a lawsuit against Suphanan with the Civil Court in the Black Case No. Por. 7633/2561. On 12 November 2019, the Civil Court dismissed the case in the Red Case No. Por. 5964/2562.

 

On 22 December 2020, the Appeal Court rendered the judgement,* opposing the Civil Court’s decision. In this regard, the defendant is required to pay civil penalty twice the amount of the benefits that he received or would have received from the commission of the offense, which is the highest penalty rate prescribed by law, at the amount of 21,284,548.48 baht, and a compensation for the benefits that would have been received from the commission of the offense at the amount of 10,642,274.24 baht, totaling 31,926,822.72 baht plus the annual interest rate of 7.5 percent, starting from the case filing date until the date on which the full amount has been paid to the plaintiff. The case is final as decided by the Appeal Court.

 

Deputy Secretary-General Sakkarin Ruamrangsri said: “This is an insider trading case proceeded under civil sanction, filed with the Civil Court on 27 December 2018 and the Appeal Court passed the final rulings on 22 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.  


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Remark: * Black Case No. 1415/2563 and Red Case No. 11892/2563.






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