According to a referral from the Stock Exchange of Thailand (SET) and the SEC’s further investigation, it was found that during 4 - 22 December 2014, 13 persons colluded to manipulate the price of KIAT share to be inconsistent with the normal market condition, causing the price of KIAT share to rise from 7.75 baht to 15.60 baht. The 13 offenders are (1) Mr. Kiatichai Monsereenusorn, (2) Mr. Nam Cholsaipan, (3) Mr. Suppawut Maneerin, (4) Miss Sani Jiewjinda, (5) Mr. Yos Thanarakchoke, (6) Mrs. Nipa Cholsaipan, (7) Miss Namthip Cholsaipan, (8) Mr. Suraphong Triamchanchai, (9) Nippon Pack (Thailand) Public Company Limited (NPP)*, (10) Miss Rinnapa Kunawatsatit, (11) Mr. Patinya Dheva-aksorn, (12) Mrs. Kingkarn Smitananda, and (13) Mr. Praphol Milindachinla.
The said persons cooperated by acting in different manners to manipulate the KIAT shares. In this regard, Nam, Suppawut, Sani and Yos took on the role of trading KIAT shares to cause the share price to increase inconsistently with the normal market condition. Simultaneously, Kiatichai, Suraphong (managing director and authorized person for trading in the NPP securities trading account), NPP, Rinnapa whose beneficiary in her securities account was Suraphong, Patinya, and Kingkarn whose beneficiary in her securities account was Praphol, colluded to trade big lots of KIAT shares several times at higher prices as manipulated by the group of offenders. Their trading activities misled general investors into believing that new investors were interested in investing in KIAT shares at gradually higher prices. Meanwhile, the group of offenders, including Nipa and Namthip, who were wife and daughter of Nam, sold KIAT shares to make profits as well as Kiatichai who sold the shares kept in a nominee’s account.
In addition, during such period of share price manipulation, Kiatichai, a major shareholder and managing director of KIAT, proposed that the Board of Directors approve a capital increase in a private placement to fellow offenders at a lower price than the market price, reduction of the par value of KIAT shares and issuance of free warrants to shareholders to create interest in trading of KIAT shares.
The acts of the 13 persons above were liable to offenses under Section 243 and subject to penalties under Section 296 of the Securities and Exchange Act B.E. 2535 (1992) and Section 317/4(1) of the Securities and Exchange Act (No. 5) B.E. 2559 (2016) in conjunction with Section 83 of the Penal Code.
The Civil Sanction Committee has resolved to authorize the SEC to initiate civil sanction proceedings against the 13 offenders, requiring each to pay civil penalty as follows: (1) Kiatichai to pay 112,609,500 baht, (2) Nam to pay 530,345 baht, (3) Suppawut to pay 9,989,632.50 baht, (4) Sani to pay 7,746,735 baht, (5) Yos to pay 5,637,442.50 baht, (6) Nipa to pay 2,865,330 baht, (7) Namthip to pay 529,545 baht, (8) Suraphong to pay 33,859,920 baht, (9) NPP to pay 23,295,000 baht, (10) Rinnapa to pay 500,000 baht, (11) Patinya to pay 60,330,000 baht, (12) Kingkarn to pay 500,000 baht, and (13) Praphol to pay 22,782,360 baht.
In addition, the civil sanctions have caused 12 ordinary person offenders to have untrustworthy characteristics of director or executive of listed company, and prohibited characteristics of personnel in capital market business. Currently, Patinya and Praphol are holding the positions of director and executive of listed company. Praphol is also capital market business personnel. The SEC is considering actions to be taken in this regard.
________________________
*Nippon Pack (Thailand) Public Company Limited has been changed to Global Consumer Public Company Limited.