Bangkok--1 Nov--SEC
The Criminal Court sentenced Sagha Sakulekpaisan to two-year imprisonment for manipulating share prices of three companies, i.e., Focus Development and Construction PLC (FOCUS), Inter Far East Engineering PLC (IFEC) and The Royal Ceramic Industry PLC (RCI), and Pailin Kumut to six-month imprisonment and a fine of 250,000 baht for conspiring with Sagha in manipulating FOCUS share price. Her jail term, however, was suspended for two years.
Yesterday (October 31, 2012), the Criminal Court ruled against two share price manipulators for violating Section 243(1), (2) in conjunction with Section 244 of the Securities and Exchange Act of 1992 (SEA) as follows:
- Sagha Sakulekpaisan or “Here-Tee” (former name: Chakchai or Thana Sae Jiem) was convicted on three counts with one-year imprisonment on each count for trading FOCUS shares during April 24-25, 2008, IFEC shares on April 29, 2008 and RCI shares on May 2, 2008, through other persons’ accounts in such a way that manipulated the prices of those shares. He was also convicted on another count with one-year imprisonment for forging other persons’ signatures for opening accounts with securities companies for trading aforesaid shares. These made the total punishment of four-year imprisonment. Since he pleaded guilty, the Court halved his jail term to two years.
- Pailin Kumut was convicted on one count with one-year imprisonment and a fine of 500,000 baht for conspiring with Sagha in FOCUS share price manipulation. As she pleaded guilty, the Court halved her jail term to six months with two-year suspension and a fine of 250,000 baht.
The Court, however, dismissed the charges against Nongluck Sinprasertlert and Adirek Umbangtalad due to lack of evidence. As investor contacts of Kim Eng Securities (Thailand) PLC, Chonburi Branch, and Merchant Partner Securities PLC, respectively, they were named as defendants in the case for aiding and abetting Sagha’s manipulation scheme.
This follows the SEC’s criminal complaint filed with the Department of Special Investigation (DSI) on December 28, 2010 against Sagha for manipulating FOCUS-IFEC-RCI share prices as well as Nongluck and Adirek as aiders and abettors who helped arrange trading accounts, send trading orders, and facilitate financial transactions related to such manipulative tradings. The DSI and public prosecutors under the Department of Special Litigation of the Office of the Attorney General decided to pursue charges against all three persons. In addition, Sagha was pressed charges on forgery and using falsified documents. According to the evidence, he forged other persons’ signatures in the application for opening trading accounts, signature card, and agreement for appointing an agent or broker of Fareast Securities Co., Ltd. Pailin was named as another defendant as the evidence indicating that she had conspired with Sagha in the FOCUS manipulation scheme.
The success of this case was another constructive outcome of integrated cooperation among law enforcement authorities, namely inquiry officers under the Bureau of Financial and Banking Crime of the Department of Special Investigation (DSI), and public prosecutors under the Department of Special Litigation of the Office of the Attorney General.