11 people to face SLC stock manipulation charges

[webfact]

11 to face SLC stock manipulation charges



BANGKOK: -- Eleven people are to face charges of stock manipulation for their role in manipulating shares of Solution Corner Company in 2010.

An order to indict the 11 individuals was signed today by Pol Col Paisit Wongmuang, director-general of the Department of Special Investigation.

Named as suspects in stock manipulation are Chai Bunnag, Pathamun Buranasin, Supitchaya Chaimoenwong, Meesak Makbamrung, Apinanthakarn Pongsathabadee, Theprith Seehisaraphisit, Thavee Boonprasai, Ms Chanatip Tantipoontham, Pawit Nathapant, Ms Siriya Damrongvithitham and Thai Boonpraspai.

DSI received a complaint from the Securities and Exchange Commission against the 11 individuals on September 9 last year suspected them of collaborating to manipulate SLC shares during March 31-April 29, 2010 and during May 3-July 21, 2010.

The 11 suspects were said to have separately placed orders for the purchase of SLC shares through nine bank accounts of the group. It was observed that the group simultaneously stopped buying SLC shares on the same days as the nine bank accounts were inactive.

Their alleged stock manipulation helped drive up SLC share price from 6.10 baht/share to 7.20 baht/share and up by one baht on April 29 which was in contrast with the MAI index which showed a price drop.

Source: http://englishnews.thaipbs.or.th/content/147291


-- Thai PBS 2016-01-20

[thesetat2013]

I'm not a stock market expert but the thought that getting your stocks value increased was the main idea here. Who is to say they were not watching the market closely as well as the bank accounts and chose to make their accounts inactive prior to a devaluing of their stocks. I have seen how many people have constant market prices scrolling across their computers while they are working and always eyeing it to see the current values. I think this will be a hard case for the DSI to prove. But, then again, as stated, I am no expert on the stock market.

[Srikcir]

Driving up a stock price by merely publically buying stock is not stock manipulation. In fact when a minority shareholder(s) decide to increase their holdings to legally place a director on the board and/or situate themselves for a company takeover, buying up the company's stock in an pem market is a normal strategic approach.

The complaint against the new majority owners of SCC "may have been" intended to disenfranchise the new owner's legitimate ownership without the original majority owners having to compete in a stock price war.

So the action may be more about protectionism than it is about fraud or corruption. And if the indictment is successful, it will put a serious question as to the viablity of Thailand's security laws from a foreign perspective. It may also create a barrier to ASEAN Community integration with regards the Thai-owned businesses.