The Securities and Exchange Commission (SEC) has filed a criminal complaint with the Department of Special Investigation against three executives and a company, alleging dishonesty and account falsification in their management of the TU Dome Fund.
Maris Tarab, former managing director of ING Funds (Thailand) is charged with dishonesty and account falsification. (Bloomberg photo)
The TU Dome Residential Complex Property Fund (TU-PF) was set up by ING Funds (Thailand) Co to invest in residential dormitories and apartments at Thammasat University's Rangsit campus. The project was initially delayed for more than two years because contractors failed to complete construction on time.
The SEC statement said that the complaint had been filed against Maris Tarab, former managing director of ING Funds (Thailand) Ltd and former fund manager of the TU Dome fund, Burim Chombhubol, another former TU Dome fund manager, Bania Ltd, and Suthapa Khemaprueth, managing director of Bania Ltd.
A routine inspection first uncovered that the TU Dome Fund had failed to comply with regulations under the Securities and Exchange Act BE 2535 (1992), so sanctions were imposed on ING Funds, Mr Maris and Mr Burim.
The SEC further investigated the case and found that from Jan 5 to March 27, 2009, Mr Maris and Mr Burim, then TU Dome fund managers, had performed their duties dishonestly by allowing TU Dome Fund to pay 10.4 million baht to Bania.
It was claimed that the payment was made for a turnkey contract for construction and improvements to TU Dome Fund assets, but the SEC found evidence that Mr Maris and Mr Burim, with support of Bania Co and Mr Suthapa, had falsified documents and evidence concerning the money, in order to mislead others.
The SEC filed criminal complaints with the DSI against the group.
It had already imposed a 10-year ban on Mr Taris and Mr Burim for serious misconduct resulting in great losses for the property fund and unit holders in September 2012.
The fund's lease area covers more than 12 rai near the Thammasat Rangsit campus and includes a 12-storey serviced apartment building, parking facilities and three 10-storey dormitory buildings already open for use. The area also includes a "lifestyle shopping centre" with 15,000 square metres of retail space and parking for more than 400 vehicles.
ING Funds in July 2012 estimated that the TU-PF fund should generate annual returns upwards of 12% over the 30-year lease.
TU-PF units last traded on the Stock Exchange of Thailand on July 16, when they closed at 5.30 baht with only 800 units traded. It was first traded on the SET on Dec 6, 2006 at a par value of 9.923 baht.