SEC files a criminal complaint against a British citizen for unlicensed securities business operatio

[Misty]

Bangkok, February 8, 2016 – The SEC has filed a criminal complaint with the Economic Crime Suppression Division of the Royal Thai Police (ECD Police) against Richard Dunston Malpass, a British nationality, on account of operating securities business without license.

Several foreign investors informed the SEC that Mr. Malpass, who resided in Thailand, had solicited them to transfer their pension funds from overseas to make investment based on his advice for the sake of tax benefits and long-term return. The investors followed his advice but suffered loss.

Mr. Malpass was not licensed to operate securities business pursuant to the Securities and Exchange Act of 1992. His action was in violation of Section 90 and liable to penalties under Section 289, which are imprisonment for a term of 2 to 5 years and a fine from 200,000 to 500,000 baht, plus a daily fine of 10,000 baht until the period of violation ends.

The SEC, therefore, filed a criminal complaint against Mr. Malpas with the ECD Police for further legal proceedings. Anyone who may have been affected because of his unlicensed securities business operation should give their accounts for the ECD Police’s further investigation and procecution by calling 0-2237-1199.

Investors are strongly advised to consult the License Check banner at www.sec.or.th before making investment decisions. Information on suspecious unlicensed securities business operation can be given to the SEC for further appropriate action via Hotline 1207.

http://www.sec.or.th/en/Pages/News/Detail_News.aspx?tg=NEWS&lg=en&news_no=9&news_yy=2016

[NeverSure]

Wow. No amount of money could entice me to risk prison, especially not in a third world country. What was he thinking?

[worgeordie]

Wow. No amount of money could entice me to risk prison, especially not in a third world country. What was he thinking?

Easy money,lets hope he gets all he deserves.

regards worgeordie

[Farma]

Now a second one

Bangkok, February 10, 2016 – The SEC has filed a criminal complaint with the Economic Crime Suppression Division of the Royal Thai Police (ECD Police) against Global Consultant Co., Ltd. and Neil Arthur Robbirt, a British citizen, on account of jointly operating securities business without license.

http://www.sec.or.th/en/Pages/News/Detail_News.aspx?tg=NEWS&lg=en&news_no=11&news_yy=2016

[buddhalady]

Is there any hope the SEC will get round to filing criminal complaints for all the others who've been operating illegally with impunity over the past 10 years or so? Including, hopefully, a few who did a runner when the LMIM ponzi scheme broke? How many of the runners still have property here and are allegedly operating from their home countries through intermediaries?

[Misty]

Is there any hope the SEC will get round to filing criminal complaints for all the others who've been operating illegally with impunity over the past 10 years or so?

This International Investment article suggests that more criminal complaints will follow:

Thai SEC Acts Against 2nd Expat Adviser in 2 Days

"Thailand’s Securities & Exchange Commission has filed its second criminal complaint in two days against a British national for operating a securities business in the country without a licence, in what some observers say could be the beginning of a Thai crackdown on as many as 11 allegedly unregulated, expat-focused advisory businesses. The 11 businesses marketed the funds of LM Investment Management, an Australian fund house that collapsed in 2013, leaving, among others, some 60 members of a Thailand-based investors’ group out-of-pocket by what they claim is as much as US$13.4m."

[Asiantravel]

Is there any hope the SEC will get round to filing criminal complaints for all the others who've been operating illegally with impunity over the past 10 years or so?

This International Investment article suggests that more criminal complaints will follow:

Thai SEC Acts Against 2nd Expat Adviser in 2 Days

"Thailand’s Securities & Exchange Commission has filed its second criminal complaint in two days against a British national for operating a securities business in the country without a licence, in what some observers say could be the beginning of a Thai crackdown on as many as 11 allegedly unregulated, expat-focused advisory businesses. The 11 businesses marketed the funds of LM Investment Management, an Australian fund house that collapsed in 2013, leaving, among others, some 60 members of a Thailand-based investors’ group out-of-pocket by what they claim is as much as US$13.4m."

from the article

" the SEC had been aware of the activities of his and his company’s activities “over the years” but that until recently, it had said nothing about the need for a licence."

so if the SEC has now changed its policies I wonder how far this change could extend? Is it only applicable to people who are actually holding other people's money or is it much wider than that?

I'm intrigued as to whether this can possibly apply to anyone unlicensed who is providing any form of advice such as for example those running seminars on how to invest in the stock market?

[Misty]

Is there any hope the SEC will get round to filing criminal complaints for all the others who've been operating illegally with impunity over the past 10 years or so?

This International Investment article suggests that more criminal complaints will follow:

Thai SEC Acts Against 2nd Expat Adviser in 2 Days

"Thailand’s Securities & Exchange Commission has filed its second criminal complaint in two days against a British national for operating a securities business in the country without a licence, in what some observers say could be the beginning of a Thai crackdown on as many as 11 allegedly unregulated, expat-focused advisory businesses. The 11 businesses marketed the funds of LM Investment Management, an Australian fund house that collapsed in 2013, leaving, among others, some 60 members of a Thailand-based investors’ group out-of-pocket by what they claim is as much as US$13.4m."

from the article

" the SEC had been aware of the activities of his and his company’s activities “over the years” but that until recently, it had said nothing about the need for a licence."

so if the SEC has now changed its policies I wonder how far this change could extend? Is it only applicable to people who are actually holding other people's money or is it much wider than that?

I'm intrigued as to whether this can possibly apply to anyone unlicensed who is providing any form of advice such as for example those running seminars on how to invest in the stock market?

I would question those comments in the article. I've met with the Thai SEC on many, many occasions over the years (licensed since the 1990s). The SEC have always been clear about the licensing requirements - there's been no change in policy. They also readily supply an English translation of the SEC Act of 1993 which makes the requirements clear. Thai law firms that practice securities law have also been aware of the requirements for decades. My guess would be none of these "IFAs" asked the SEC about the requirements, nor sought separate legal counsel. If someone at the SEC or a legitimate law firm told them they did not need to be licensed, I'd guess the "IFA did not fully disclose what business they were doing. In any event, any real investment professional would assume that there is a regulatory requirement and seek to comply with it before setting up shop in a new jurisdiction.

Unfortunately the SEC doesn't have the manpower to hunt down every last "IFA" operating illegally in Thailand so it relies on substantiated complaints before taking action. To try to help the public in recent years the SEC has been making an "Investor Alert" page available which lists anyone unlicensed in Thailand who is providing investment advice:http://market.sec.or.th/public/idisc/en/InvestorAlert The recent filing of criminal complaints by the SEC seem to be due to a very large complaint filed by a number of folks who were sold a Ponzi scheme.

Regarding seminars, it would be interesting to see the Thai SEC's response. Why not email them and post the answer here? http://www.sec.or.th/EN/SECInfo/ContactUs/Pages/MapTelephone.aspx

[CB1100R]

It's looking more likely that the Thai SEC are not able to do anything about these two Criminal Complaints as it's now nearly 4 months later and the Royal Thai Police do not appear to have taken any action whatsoever.

At least one of these 'Gentlemen' is still comes and goes in Thailand as he pleases, conducting 'business as usual' and swanning around Soi 22 with his entourage openly stating that no one can touch him in Thailand because he's done nothing wrong.

A hollow sentiment considering I personally knew of one client who lost all his money, fell ill and because he couldn't afford it recently died for the lack of health care - nothing to do with the 'Financial Advisor' though... pitiful really.

Edited May 30, 2016 by CB1100R