Bangkok: The Securities and Exchange Commission (SEC) has filed charges against four former directors and executives of CMO Public Company Limited (CMO) with the Economic Crime Suppression Division (ECSD) for fraudulent conduct. The accused allegedly invested in shares of Momentum S Company Limited (MTS) and then resold them to CMO at an inflated price, thereby profiting from the difference and causing financial damage to CMO.
According to Thai News Agency, the SEC initiated legal proceedings after CMO’s auditors reported irregularities during the 2023 annual audit. The audit, conducted in compliance with Section 89/25 of the Securities and Exchange Act B.E. 2535, revealed questionable investment transactions involving MTS. A subsequent Special Audit report, ordered by the SEC and submitted by CMO in February 2024, confirmed these findings.
The SEC’s investigation uncovered credible evidence implicating two former CMO directors, Mr. Kittisak Champathippong and Mr. Kitti Puathawornsakul, as well as two other parties, Mr. Suradej Tangsathienchaikul and T-Money (Thailand) Co., Ltd. (T-Money). It was determined that Mr. Kittisak and Mr. Kitti used T-Money to acquire MTS shares from original shareholders for 400,000 baht, which they subsequently sold to CMO for 65 million baht. This significant price discrepancy allowed the individuals to profit while inflicting financial harm on CMO, constituting an offense under the Securities and Exchange Act.
The actions of the accused contravene multiple provisions of the Securities and Exchange Act, namely Section 281/2, paragraph two, in conjunction with Section 89/7, and Sections 307, 311, 313, and 315, alongside Sections 83 and 86 of the Criminal Code. Consequently, the SEC has filed charges with the ECSD and informed the Anti-Money Laundering Office (AMLO), as these offenses are considered predicate under the amended Anti-Money Laundering Act B.E. 2542 (1999).
As a result of the indictment, the individuals involved are barred from serving as directors or executives in securities-issuing companies and listed companies for the duration of the legal proceedings, effective from the date the SEC lodged the accusation with the ECSD.
Following the SEC’s indictment, the case will undergo further investigation by police officers, prosecution by the public prosecutor, and trial in court. The SEC has committed to monitoring the case’s progress and will collaborate with relevant agencies to ensure effective law enforcement under the Securities and Exchange Act throughout the post-indictment process.