Stark Corp’s fraudulent practices to be investigated by DSI
The Department of Special Investigation (DSI) is to look into Stark Corporation under the Special Case Investigation Act of 2004, DSI chief Pol Maj-General Suriya Singhakamol said on Friday.
The wire and cable manufacturing company, which is listed on the Stock Exchange of Thailand (SET), is suspected of fraud by its former executives who allegedly tried to hide the company’s accumulated loss during 2021-2022 of 12 billion baht, 4 billion of which is reportedly negative shareholder equity.
The issue came to light after Stark Corporation failed to submit its financial statements within the deadline required by law.
The Securities and Exchange Commission (SEC) earlier warned that the company was likely to default on five tranches of corporate bonds repayment worth nearly 9.2 billion baht, as Stark's financial statement, finally submitted on June 16, showed that it has more liabilities than assets. SET also said Stark Corporation faces a possible delisting.
Suriya said initial investigations have found that the case involves wrongdoing by company executives and/or related parties in violation of the Securities and Exchange Act that affects investors’ interests and confidence in Thailand’s economy.
The DSI chief said he has tasked his deputy Pol Maj-General Yutthana Praedam to lead the investigation and coordinate with the SEC, the Economic Crime Suppression Division, and other related agencies. Investigators will meet to discuss operational procedures on Monday (June 26).
The Thai Investors Association reported that as of 11am on June 22 a total of 1,112 individuals had submitted complaints in preparing for the filing of charges against Stark Corporation, with combined damages of 2.2 billion baht.
The association is accepting complaints via this online form until Sunday.
On Friday the price of Stark Corporation's share dropped to 0.02 baht from 0.18 baht recorded on June 1.
