Chanin Yensudchai, one of the key suspects in Stark Corporation embezzlement scandal, has been arrested in Dubai and will be deported on Sunday, according to a source familiar with the case.
Prime Minister Srettha Thavisin had asked the United Arab Emirates to help track down the former Stark CEO after authorities learned he had been hiding there.
Upon being informed the fugitive was in custody, the prime minister ordered the Department of Special Investigation (DSI) to prepare for Mr Chanin’s deportation, the source said. Reports said he would arrive in Thailand at 8am on Sunday.
Justice Minister Tawee Sodsong said DSI investigators would meet the suspect at Suvarnabhumi Airport and take him to their headquarters for questioning.
Earlier, the DSI asked Interpol to issue a red notice for Mr Chanin after he failed to report to acknowledge charges concerning irregularities in Stark’s financial statements. It also asked the Department of Consular Affairs to revoke his passport.
The DSI accepted the financial misconduct case for investigation in June last year and later recommended legal action against seven Stark employees and five related companies for forgery, fraud, embezzlement and money laundering under the Securities and Exchange Act.
The seven were identified as Stark’s largest shareholder Vonnarat Tangkaravakoon, former board member Chinawat Assavapokee, former chief financial officer Sathar Chantrasettalead, former chief marketing officer Kittisak Jitprasertngam, Mr Sathar’s former secretary Yosabavorn Amarit, Mr Chanin, and secretary Nattaya Prabpetch.
The five companies were Stark and its subsidiaries: Phelps Dodge International (Thailand), Thai Cable International, Adisorn Songkhla Co and Asia Pacific Drilling Engineering.
The accounting and embezzlement scandal at SET-listed Stark was one of the country’s largest corporate frauds in recent years.
A major player in the wire and cable manufacturing industry, Stark faced allegations of falsifying financial statements, inflating revenues and misappropriating company funds.
The scandal came to light in early 2023 after external auditors noticed discrepancies between reported figures and actual financial performance. Subsequent investigations by the Securities and Exchange Commission (SEC) confirmed these findings, revealing that the financial statements had been manipulated for several years.
Investigators found that Stark executives orchestrated a scheme to present a misleadingly positive financial outlook to investors and stakeholders. This involved creating fake sales records, overvaluing assets and hiding liabilities to artificially boost the company’s stock price and secure loans and investments.
The misdeeds attributed to the accused executives ultimately affected 4,704 shareholders, causing financial damage estimated at 14.7 billion baht, according to regulators.