Charges filed and assets seized in Stark fraud case
The Securities and Exchange Commission (SEC) on Thursday filed charges and an asset seizure order with the Department of Special Investigation (DSI) against Stark Corporation and nine others for financial misconduct, including alleged account manipulation to deceive investors.
The alleged fraud at Stark Corporation, an industrial cable maker, has affected numerous shareholders, bondholders, and creditors, inflicting estimated damages of 100 billion baht.
Earlier on Thursday, the DSI issued an arrest warrant for Chanin Yensudchai, former chairman of the company, after authorities learned that he had fled to Hong Kong.
The 10 individuals/companies facing charges and asset seizures are:
1. Stark Corporation Plc
2. Chanin Yensudchai
3. Vonnarat Tangkaravakoon
4. Chinawat Assavapokee
5. Sathar Chantrasettalead
6. Kittisak Jitprasertngam
7. Phelps Dodge International (Thailand) Co Ltd
8. Thai Cable International Co Ltd
9. Adisorn Songkhla Co Ltd
10. Asia Pacific Drilling Engineering Co Ltd
The SEC also dispatched a notice to stock brokers to seize the assets of the above individuals, who are current or former executives of Stark, and its affiliated companies.
The authority added that it is preparing to file related charges with the Anti-Money Laundering Office.
Representatives from some 11,000 small shareholders of the company on Thursday also filed a complaint with the DSI against eight individuals they accused of public embezzlement, money laundering, and violation of the Computer Crime Act in connection with the Stark scandal. They are claiming combined damages amounting to 10.45 billion baht.
DSI deputy director-general Police Major Yuthana Praedam estimated that some 80% of known evidence has been collected so far. He also believes that in addition to Chanin, other parties were involved in ordering the account manipulation.
