Judges tell 3 ex-bank execs to repay billions from jail cell

Judges tell 3 ex-bank execs to repay billions from jail cell

The Supreme Court yesterday upheld rulings made by lower courts against three former executives of the now-defunct Bangkok Bank of Commerce (BBC), who were found guilty of embezzlement and violating the stock exchange law.

In December 2005, the Criminal Court sentenced Jittasorn Pramoj Na Ayudhya, MR Damrongdej Diskul and MR Supanee Sarasin Diskul each to six years in jail for their roles in the infamous graft case which led to the bank's collapse. They were freed on bail pending appeal.

The defendants were ordered to pay a fine of 666,666 baht each, and together repay $US85 million (3 billion baht) to the BBC. Public losses amounting to more than 100 billion baht were incurred when the bank collapsed.

One of the key defendants, Krirkkiat Jalichandra, the ex-president of the defunct BBC, died of cancer in October 2012 and had been sentenced to 20 years and fined $472 million.

The fraud occurred in 1994 and involved the false recapitalisation of the BBC. In July 1994, Krirkkiat approved a $126-million loan to the National Credit Bank, a $50-million loan to Arcardia Capital Partners Inc and another $5 million to AH Corporate Holding and Finance Inc.

Rakesh Saxena, the bank's ex-financial adviser, signed the promissory notes issued by the two companies for the loans, which were given for bank shares. The Criminal Court said the share subscriptions, loan approvals and share sales were premeditated, so it was impossible the three defendants were not aware of the transactions.

The ruling was later upheld by the Appeal Court and by the Supreme Court yesterday. The defendants were sent to jail.

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