Prosecutors have decided to file charges against Chanin Yensudchai, the main suspect in the STARK stock fraud case, on six serious counts.
The investigative officers have opposed bail and are preparing to present the case to the court on June 24. Chanin denies all allegations and seeks to amend his previous testimony.
The STARK stock fraud case, one of the largest financial scandals in Thailand’s stock market history, involves damages exceeding 15 billion baht. Chanin Yensudchai, former executive of Stark Corporation Public Company Limited (STARK), was apprehended after fleeing to Dubai for eight months. The Department of Special Investigation (DSI) coordinated his extradition back to Thailand.
Chanin on Sunday appeared expressionless and declined to answer any questions from the press as authorities escorted him from Suvarnabhumi Airport to the DSI headquarters. There, the investigative team charged him and began interrogating him.
Justice Minister Pol. Col. Tawee Sodsong emphasized the case’s significance due to its impact on the Thai stock market. The six major charges include fraud, violations of the Securities and Exchange Act, and money laundering. Despite being informed of all charges, Chanin maintains his innocence and wishes to revise his previous statements regarding the acquired assets.
Chanin expressed concerns about his safety due to threats from victims and mentioned health issues related to his abdomen.
The DSI’s investigation revealed minimal direct financial transactions involving Chanin, with funds mainly linked to his secretary and others. The DSI is still investigating if Chanin hid assets during his time abroad, as no assets were found with him upon arrest. It may take another month to uncover assets tied to the money laundering network.
After the interrogation, Chanin was detained at the DSI’s detention facility as bail has been denied. He will then be presented to the prosecutors on Monday afternoon for further court proceedings.
The DSI took up the STARK stock fraud case as a special investigation on June 20, 2023. The case involves 4,072 victims with total damages amounting to 14.778 billion baht. Eleven suspects have been charged with violations of the Securities and Exchange Act, fraud, and money laundering under the Anti-Money Laundering Act.
The Anti-Money Laundering Office (AMLO) has managed to recover only 3 billion baht of the total damages. Efforts are ongoing to reclaim more of the lost funds for the victims.
The STARK scandal has heavily criticized the Securities and Exchange Commission (SEC) and the Stock Exchange of Thailand (SET) for their lax oversight of listed companies and inadequate investor protection measures.
Chanin, a key aide to Wanarat Tangkaravakun, heir to the TOA paint empire, played a central role in this fraud. Another involved party is former chief finance officer Sattha Chansetthalert and Chanin’s secretary.
The fraudulent activities began with the acquisition of the struggling Phelps Dodge company by Wanarat for 3 billion baht, with Chanin orchestrating the deal.
After turning the company around, the business was backdoor listed on the stock market through Siam Inter Multimedia Public Company Limited (SMM), which later became STARK, with Chanin as CEO and Wanarat as the major shareholder.
Under their management, STARK appeared to thrive, attracting numerous investors. However, after raising 5 billion baht from institutional investors in late 2022 for an acquisition that was later canceled without refunding the money, the company’s stock plummeted, revealing severe financial mismanagement. Subsequent investigations found STARK’s financial reports unreliable, leading to a significant drop in investor confidence and the suspension of its stock from trading.
There are a total of six suspects in this case, all of whom have now been arrested. None of them have been granted bail. The judicial process will commence on January 14, 2025. (TNA)
