The Securities and Exchange Commission (SEC) has filed a criminal complaint with the Department of Special Investigation against six people and three companies for allegedly falsifying documents and accounts and corporate fraud, causing damage to Thai Unique Coil Center Plc (TUCC).
The nine accused are Yongyuth Ngamkaiwan, TUCC's chief executive and director; Vacharee Ngamkriwan, TUCC's deputy chief executive and director; Suchit Rungcharoenchai, ex-TUCC director, deputy chief executive and chief financial officer; Nitaya Yongphithakwatana, TUCC director; Suttirat Sewee, TUCC director and finance and accounting department director; BF Intertrade Co; K.S.C. Stainless Products Co; Jalernrat Chuenwiratsakul, director of both BF Intertrade and K.S.C.; and Thai Niche Co.
The SEC has probed the case and found the accused jointly acted to cause BF Intertrade and K.S.C., two related companies where Ms Jalernrat was a director, to issue post-dated cheques to TUCC and its subsidiary Thai Niche.
They created a story that TUCC and Thai Niche sold black steel to BF Intertrade and K.S.C. When the cheques were nearly due, they made false entries that TUCC made purchase orders totalling almost 530 million baht for black steel from eight suppliers.
The SEC found some money withdrawn from TUCC's bank account was used for the benefit of some TUCC executives.
The actions of the accused were deemed violations of Sections 307, 308, 311, 312 and 313 of the Securities and Exchange Act.
Mr Yongyuth, Mrs Vacharee, Mrs Suchit, Ms Nitaya and Ms Suttirat were deemed as having untrustworthy characteristics as directors of a publicly held company.
Their directorships and executive positions at TUCC were terminated in accordance with Sections 89/4 and 89/6 of the Act.
Three audit committee members told the SEC the committee's reports were concluded from information supplied by accounting units.
They did not review documents even though it was their duty to look at financial reports, internal control systems and suspicious transactions.
The SEC found there was no indication the audit committee assisted the wrongdoing of TUCC executives, but all of its members still resigned.