The Securities and Exchange Commission (SEC) filed a formal complaint with the Department of Special Investigation (DSI) today (Thursday), against six individuals, who are former and active executives and a major shareholder of Stark Corp, an industrial cable maker, and four companies, for financial misconduct, ranging from doctoring financial statements, accounting irregularities and hiding information from the public regarding the sale of debentures to public fraud.
The SEC has also submitted the case to the Anti-Money Laundering Office, for consideration of impounding the assets of the accused.
Those named in the complaint include major shareholder Vonnarat Tangkaravakoon, former chairman Chanin Yensudchai and former chief financial officer Sathar Chantrasettalead, Adisorn Songkhla Company, Phelps Dodge International (Thailand) Company (PDITL) and Thai Cable International Company (TCI).
The alleged fraudulent acts were part of the scam involving the sale of Stark debentures and a plan to increase capital in the stock market to raise funds for the acquisition of LEONI Kabel GmbH and LEONIsche Holding Inc. in Germany.
DSI deputy director-general Pol Maj Yutthana Praedam said that the DSI is in the process of issuing a warrant for the arrest of Chanin, who is reported to have left for Hong Kong.
Meanwhile, it is reported that representatives of some 11,000 small shareholders, who have been affected by the actions of those detailed in the complaint will lodge a complaint with the DSI today, seeking to charge seven former and active executives of STAR of fraud and money laundering.
