Credit Union execs accused of embezzling Bt12 billion

[webfact]

Credit Union execs accused of embezzling Bt12 billion
Piyanut Tumnukasetchai
The Nation



BANGKOK: -- Mounting evidence that Klongchan Credit Union Cooperative Ltd embezzled nearly Bt12 billion has led the Department of Special Investigation (DSI) and the Anti Money Laundering Office (AMLO) to launch an investigation into the company and its executives.

More than 100 customers have lodged complaints against the cooperative's chairman, Supachai Srisupaaksorn, other executives and officials, after they were unable to withdraw money from their accounts with the cooperative, a source revealed yesterday.

A joint team from the DSI and AMLO searched the cooperative and Supachai's houses yesterday. AMLO official Noppadon Uten said Supachai and other executives allegedly owned more than 300 plots of land. "Some of the plots are worth more than Bt90 million," he said.

AMLO has already frozen the assets of the suspects.

"Evidence suggests that they have embezzled more than Bt10 billion in cash using the cooperative's cashier cheques and false documents," AMLO secretary-general Seehanat Prayoonrat said.

Supachai has maintained that he has done nothing wrong and is ready to clear up any doubt. He has accused the cooperative's former executives of taking away some crucial documents and made a plea for them to "return the documents to facilitate the probe".

According to Seehanat, Supachai will meet with relevant authorities to officially provide an explanation.

DSI official Kittikong Kanajan warned suspects against intimidating witnesses.

"We have found that the suspects have constantly intimidated witnesses. Such intimidation is punishable under Thai law," he said, adding that key witnesses were already in protection.

-- The Nation 2013-07-11

[LuckyLew]

A few more billion and they would have qualified to work for the PTP

[noitom]

Without some form of public prosecution and punitive disposition, it means nothing for the Thais to keep filling the news with these swindle "discoveries" and cons.

[arthurboy]

My wife has been swindled by this lot - more later.

[nachiket]

Supachai has maintained that he has done nothing wrong and is ready to clear up any doubt. He has accused the cooperative's former executives of taking away some crucial documents and made a plea for them to "return the documents to facilitate the probe".

Anything can happens if one has to produce documents at later stage. After all, an Artificial Judicial Person will speak language of directors and board members.

[Pib]

And I expect credit unions are not covered under the Thailand bank deposits guarantee program. Unfortunately it's probably "goodbye money" for many depositors. Sounds like it may have been nothing more than a ponzzi scheme.

Sent from my tablet

[arthurboy]

The credit union was set up in 1983 under the auspices of the then government, thus providing a centralized checks and balances system (yeah right) and a guarantee of - I think, it's not clear - 70% of investment guaranteed in the event of a collapse.

The two central players are Mr. Supachai Srisupaaksorn and Mr. Monthon Kunlom. In November last year, some kind of power struggle developed. From what we know - as you may expect, it's actually very little - a substantial amount of money - ?100 million baht - appeared unaccounted for.

As a result, this year, accounts were frozen and public meetings held so account holders could vote for who they wanted to control the credit union.

Both Monton and Supachai organized separate public meetings, sending sms' to 1) invite members to attend 2) discredit the validity of the others meeting. Supachai won.

My wife went to Supachai's meeting where investors (my wife included), trying to ask about their money, were shouted down by Supachai's supporters.

The credit union has just over 52,000 members with assets of 22.4 billion Baht, deposits totaling 14.41 billion Baht and outstanding loans of 15 billion Baht.

It's an absolute mess and corrupt as they come.

Of course, I fully expect nothing to come of this - as usual - and those with power, influence and money to get off scot free - as usual.

But, you never know...we live in hope.

Edited July 11, 2013 by arthurboy

[Thai at Heart]

The credit union was set up IN 1983 under the auspices of the then government, thus providing a centralized checks and balance system (yeah right) and a guarantee of - I think, it's not clear - 70% of investment guaranteed in the even of a collapse.

The two central players are Mr. Supachai Srisupaaksorn and Mr. Monthon Kunlom. In November last year, some kind of power struggle developed. From what we know - and as you may expect, it's actually very little - a substantial amount of money - ?100 million baht - appeared unaccounted for.

As a result, this year, accounts were frozen and public meetings held so that account holder could vote for who they wanted to control the credit union.

Both Monton and Supachai organized separate public meetings, sending sms' to 1) invite members to attend 2) discredit the validity of the others meeting.

My wife went to Supachai's meeting where investors, trying to ask about their money, were shouted down by Supachai's supporters.

The credit union has just over 52,000 members with assets of 22.4 billion Baht, deposits totaling 14.41 billion Baht and outstanding loans of 15 billion Baht.

It's an absolute mess and corrupt as they come.

Of course, I fully expect nothing to come of this - as usual - and those with power, influence and money to get off scot free - as usual.

Things like this can be the seeds of a crash or runs on banks which amount to the same thing.

Not good at all.

[Ned]

I'm thinking about buying a shovel.

[unanimosity]

A few more billion and they would have qualified to work for the PTP

Or any other party.

[Pib]

As a result, this year, accounts were frozen and public meetings held so account holders could vote for who they wanted to control the credit union.

Who froze the accounts? The credit union or the govt? If the credit union froze the accounts, then that could indicate cover-up...or to prevent a run on the bank so to say.

And are the accounts "completely" frozen where a person say just for example can't even withdraw 1,000 baht even though they may have 100,000 baht on deposit?

[IMA_FARANG]

-------------------

As a result, this year, accounts were frozen and public meetings held so account holders could vote for who they wanted to control the credit union.

Who froze the accounts? The credit union or the govt? If the credit union froze the accounts, then that could indicate cover-up...or to prevent a run on the bank so to say.

And are the accounts "completely" frozen where a person say just for example can't even withdraw 1,000 baht even though they may have 100,000 baht on deposit?

-------------------------------

I don't know for sure .... but that's usually what happens.

Almost always in the cases of such fraud or embezzlement the actual assets on hand are far less than the claimed assets shown in any records.

It;s usual to have someone with what they assume is 100K baht on deposit to receive less than half that amount in the end.

That's how the fraud is maintained .... the financial records are manipulated to show the institution in good shape while actually it's probably really nearly bankrupt.

That's why the accounts are frozen, they first need to establish the real financial status of the institution, not what the fraudulent records show.

Almost always, once the accounts are frozen, you can expect you've already lost much of your money on deposit.

Unless there is a government deposit protection by law.

Even then, the depositor is always the LAST to be repaid.

That's called "free market Capitalism".

That term means the rich get first pick and the poor are screwed as always.

Again.

[arthurboy]

As a result, this year, accounts were frozen and public meetings held so account holders could vote for who they wanted to control the credit union.

Who froze the accounts? The credit union or the govt? If the credit union froze the accounts, then that could indicate cover-up...or to prevent a run on the bank so to say.

And are the accounts "completely" frozen where a person say just for example can't even withdraw 1,000 baht even though they may have 100,000 baht on deposit?

When the problem started last year, some customers closed their accounts and withdrew their money. (This information is sketchy to say the least)

Earlier this year, the credit union placed a limit on withdrawals and then finally stopped customers from closing their accounts and withdrawing any money whatsoever.

After the last public meeting about a month ago, my wife had to go back to the credit union to sign documents seeking permission to close her account and withdraw her funds. She was told this would take about 3 months to process.

And then yesterday, well you know the rest...

Let me emphasize here that information from the credit union, the public meetings and the government agency responsible has been either non-existent or simply contradictory and confusing.

Classic tactics for a situation such as this, I opine.

Keep everyone in the dark until we rearrange the books, reorder the trough, pay off whoever etc. etc.

[sonar6ca]

Never a dull moment for the DSI.

[Nickymaster]

Department of Special Investigation (DSI) and the Anti Money Laundering Office (AMLO) to launch an investigation into the company and its executives.

Nothing will happen, nobody will be punished. These departments are a waste of taxpayers money.

[GeorgeO]

What else does anyone expect when those in charge of the country engage in this sort of behavior on a daily basis? The behavior of the current government simply emboldens all others to simply help themselves.

We have seen a major shift from people "dipping their hand in the till" to backing a four-ton truck up to the front door of a financial institution...!

Heaven help this place, 'cos we have no idea of what is yet to come...!!

[Bakseeda]

A few more billion and they would have qualified to work for the PTP

[GeorgeO]

What else does anyone expect when those in charge of the country engage in this sort of behavior on a daily basis? The behavior of the current government simply emboldens all others to simply help themselves.

We have seen a major shift from people "dipping their hand in the till" to backing a four-ton truck up to the front door of a financial institution...!

Heaven help this place, 'cos we have no idea of what is yet to come...!!

Oh, and by the way, let's not forget to add this to the list of items that Thai students studying overseas need to focus on when spreading "Thainess" around the world....!!

[klauskunkel]

BANGKOK: -- Mounting evidence that Klongchan Credit Union Cooperative Ltd embezzled nearly Bt12 billion has led the Department of Special Investigation (DSI) and the Anti Money Laundering Office (AMLO) to launch an investigation into the company and its executives.

Bangkok: The ever-increasing mountain of evidence that Klongchan Credit Union Cooperative Ltd embezzled nearly Bt12 billion had finally reached such heights that the DSI and AMLO could no longer safely ignore and were finally forced to reluctantly launch an investigation.

Supachai has maintained that he has done nothing wrong and is ready to clear up any doubt. He has accused the cooperative's former executives of taking away some crucial documents and made a plea for them to "return the documents to facilitate the probe".

Supachai has maintained that he is innocent as a little lamb and is ready to grease any palm necessary to prove it. He has accused the cooperative's former execs of taking away some crucial post-its and is down on his knees begging them to return these docs, otherwise the DSI and AMLO can't possibly do a thorough job.

[jpduggan]

Thailand is going down the road that Ireland did. Building houses and condos all over the place even though they can't sell half the ones that are already built and now the financial institution executives are robbing their institutions in spite of there being a watchdog to deter that. Crash is coming soon.

[Ricardo]

Things like this can be the seeds of a crash or runs on banks which amount to the same thing.

Not good at all.

Especially with BAAC having to borrow further, to fund payout under the rice-pledging scheme, since the government is slow to reimburse them, and weren't there problems at a couple of other banks too ?

Let's hope China's banks & property-bubble don't run into difficulty, it could cause a regional problem with confidence, and confidence is everything !

[TackyToo]

...rotten to the bone! I wonder how a certain person can travel around to promote thainess when it turns out like this.

[barrybankruad]

It's absolutely no wonder that banks and bankers are loathed the world over.

[Mampara]

A few more billion and they would have qualified to work for the PTP

waz thematter u? why you no wanna give da people da chance?

[Thai at Heart]

Anyone know the legal difference and benefits of deposition in a credit union versus a bank?

Higher interest I presume, but any more?

[belg]

ah the good life, most likely by stealing or cheating

[lee b]

only 10 billion, are you sure??

[surangw]

"Supachai has maintained that he has done nothing wrong" using the thai logic of it must be ok since everyone else does it.

[Thai at Heart]

"Supachai has maintained that he has done nothing wrong" using the thai logic of it must be ok since everyone else does it.

By the time he is actually proven guilty of doing anything wrong, the money will be gone, never to be returned, it will all be quiet, and all he will ever have to worry about is a local having the balls to smack him in the head with a hammer

[Pib]

Come on everybody, I'm sure this credit union has just loaned out the Bt12 billion that may be missing...that's one of the main things credit unions/banks do with your deposits so they can earn mortgage/car/signature loan interest...and then they take some of that earned interest to pay you some interest on your deposits, pay operating costs, pay profits to shareholders, etc. And every credit union/bank only keeps a small amount in cash on-hand (say around 10% of total deposits) to cover day-to-day, average withdrawals, make a few new loans; ---everything else gets loaned out/invested. So, since it's loaned out/invested you need to give them time to round-up more cash if you needed to withdraw a really big amount or all of your deposit balance when everybody else is also wanting to withdraw a really big amount or all of their balance--or said another way, "A Run on the Bank." When a run on the bank begins the bank can freeze/limit deposits withdrawals to give them time to round-up more money. Whenever you open an account you basically sign an agreement which says all of that in "lawyer's language" that no one can understand.

Seriously, I'm being sarcastic and well as speaking the facts above regardless of the country the bank/credit union is in. But it's only the truth if the credit union/bank is truly an honest financial institution and somehow rumors have caused things to get out of control...cause an unfounded Run on the Bank situation. But on the surface this sure sounds like embezzlement/a Ponzi scheme. I sure hope all the depositors fully recover their deposits and soon, but I fear soon will not be soon.