The Securities and Exchange Commission (SEC) has accused former directors and executives of SET-listed Energy Earth Plc (EARTH) and their associates of creating artificial debt for the company to enter a business rehabilitation plan.
The accused have also fraudulently misappropriated Energy Earth assets as their own or that of a third party, according to the SEC.
The market regulator has received several complaints about an increase in Energy Earth's debt by 26 billion baht following the company's submission of its first-quarter financial statements in 2017.
The debt caused shareholders' equity to fall to negative 15.65 billion baht from a positive shareholding worth 10.35 billion before the submission.
Energy Earth's board of directors later approved the company entering a business rehabilitation plan on July 2017.
Based on the SEC's findings, seven former Energy Earth executives and directors, along with 10 creditors and attorneys of creditors, jointly colluded or supported creating the artificial debt in 2017.
The seven former Energy Earth executives and directors are Phisudhi Phihakendr, Khajohnpong Khamdee, Thanawat Pratoomsuwan, Phiroon Phihakendr, Phipat Phihakendr, Phiboon Phihakendr and Kanchana Chakvichitsopon.
The 10 creditors and attorneys of creditors are Tianjin Botai Zhongxing Trading Co Ltd, Jiangsu Guanrun Trading Co Ltd, Amazen Pte Ltd, Marco Polo Ventures Co Ltd, Napoleon Logistics Co Ltd, Lin Tong Hai, Ruangyos Mahaworamakorn, Samarth Suvajarachai, Nattha Saelee and Amnat Tangurimarn.
There is also evidence indicating that the company's assets were removed in order for the creditors to take legal action against Energy Earth, the SEC said.