Thailand’s SEC Seizes Assets of Stark Corp, Executives Assets Frozen

Thailand’s Securities and Exchange Commission (SEC) has proceeded to seize Stark Corporation’s assets, as well as those of the company’s main shareholder and some former executives accused of falsifying accounting, and has barred them from flying abroad.

The regulator stated that the assets of the scandal-plagued wire and cable producer, as well as those of Vonnarat Tangkaravakoon, the company’s largest shareholder and former acting CEO, will be frozen for 180 days.

The assets of four former executives, including former chairman Chanin Yensudchai, chief financial officer Sathar Chantrasettalead, Chinawat Assavapokee, and Kittisak Jitprasertngam, as well as Phelps Dodge International (Thailand), Thai Cable International, Adisorn Songkhla Co, and Asia Pacific Drilling Engineering, will be seized.

Thailand’s SEC has filed financial misconduct charges against those ten persons with the Department of Special Investigation (DSI), stating they were involved or conspired with others to generate false statements for Stark Corp and its affiliates in order to deceive others between 2021 and 2022.

“Their misconduct has affected a large number of people, with damages from Stark’s debts estimated to be more than 38 billion baht,” the SEC stated in a statement.

Stark Corp Exec barred from leaving Thailand

According to the regulator, the order to freeze the assets was made because “there are reasonable circumstances to believe the individuals will transfer or sell those assets.”

According to the statement, the SEC will also seek a court injunction to prevent the accused from leaving the nation during the next 15 days.

Mr Vonnarat resigned from all of his positions at Stark, including interim CEO and director, the business announced in a filing to the Thai Stock Exchange on Thursday.

Four additional individuals charged by Thailand’s SEC left the company in April. Apichart Tangeakchit serves as acting CEO until a new CEO is chosen.

The SEC’s acting secretary-general, Thawatchai Pittayasophon, told a press conference on Friday that the agency would continue to investigate additional possible anomalies at Stark, working with the DSI to charge those found guilty of fraud.

“The SEC will continue to investigate other suspicious cases related to the company,” Mr Thawatchai stated.

“The investigation is also looking into potential auditor misconduct as well as stock price manipulation.” More charges will be made against individuals implicated once we have gathered sufficient proof.”

Assets can be taken for a maximum of 180 days under the SEC’s power, and the order prohibiting executives from travelling overseas can be repeated. During this time, Stark can go about his business as usual.

“The SEC is confident that the evidence we collected and sent to the DSI is sufficient to bring this case to court,” he stated.

According to Chavinda Hanratanakool, chairperson of the Association of Investment Management enterprises, the crackdown on Stark is crucial to rebuilding investor confidence in the Thai exchange, particularly in medium-sized and tiny enterprises.

She claims that companies are having more difficulty raising additional capital through the issuing of debt securities.

“Without a rapid restoration of confidence, companies will struggle to raise funds for debt refinancing and business operations, potentially harming the economy,” Mrs Chavinda added.