The Securities and Exchange Commission has accused the two top executives of the renewable energy firm Energy Absolute (EA) of procurement fraud that earned the perpetrators 3.5 billion baht.
The charges against CEO Somphote Ahunai and his deputy Amorn Sapthaweekul relate to the purchase of equipment from overseas and/or software for a solar power plant between 2013 and 2015, according to an SEC statement issued late on Friday.
The statement also named a third person, Phornlert Techarattanopas, as involved in the “fraud”.
The procurement, which was made through two subsidiaries, resulted in the three people receiving benefits of about 3.5 billion baht, the regulator said.
Their actions violated several sections of the Securities and Exchange Act, it said.
The SEC said it had filed a case with the Department of Special Investigation and the Anti-Money Laundering Office for further legal action.
A spokesperson for EA said there was no notification from company executives on the matter yet.
Mr Somphote and Mr Amorn could not be immediately reached for comment.
EA shares on the Stock Exchange of Thailand (SET) have fallen about 60% since mid-April amid investor concerns about the company's financial health.
Mr Somphote, 57, called urgent press conferences on consecutive days earlier this month to clarify the company’s condition and try to calm shareholders and creditors.
He defended EA’s aggressive push into battery production and transport, while saying that the company has sufficient cash flow to service its 37 billion baht in debt.
Bloomberg reported recently that Mr Somphote’s net worth has fallen from about $4.8 billion two years ago to just $600 million because of the plunge in the company’s share price.
The fraud accusations come at a time of weak investor sentiment on the SET. The bourse is still recovering from the hit its image took from the Stark scandal last year.
Eleven jailed suspects are awaiting trial on charges linked to fraudulent activities that cost investors in the wire and cable producer nearly 15 billion baht.