The Securities and Exchange Commission (SEC) has accused three former executives of Stark Corporation of insider trading for selling its shares before the release of suspicious data.
The SEC said on Wednesday that it had filed charges with the Department of Special Investigation (DSI) against Chanin Yensudchai, former Stark chairman; Sathar Chantrasettalead, former chief financial officer; and Mr Sathar's former secretary Yosabavorn Amarit.
According to the SEC, these three individuals sold Stark shares through the trading account of Ms Yosabavorn in February, just before the company disclosed the information that had a negative impact on its share price. This information pertained to an auditor's remark that raised suspicions about false financial statements, leading to a delay in the release of the company's 2022 financial statement.
Mr Chanin is among 10 people accused by the SEC of producing false statements for Stark and its affiliates between 2021 and 2022, intending to deceive others and gain control of their assets.
Stark's minority shareholders and bondholders have also filed complaints with the DSI against eight individuals and entities for alleged fraud and money laundering at the debt-ridden wire and cable maker.
The scandal came to light after the firm failed to submit its financial statements in time as required by law.
The SEC said previously that the alleged financial misconduct had affected a large number of people, with damages from Stark's debts estimated to exceed 38 billion baht.
Stark Corp, four of its subsidiaries, and five individuals are accused of financial misconduct, which includes colluding with others to produce false financial statements in 2021 and 2022.
- Read more: Probe into Stark Corp delves deeper