Bangkok: The Securities and Exchange Commission (SEC) has charged three offenders, namely JKN Global Group Public Company Limited (JKN), Mr. Jakkaphong Jakrajutatip, and Ms. Pim-uma Jakrajutatip, with the Department of Special Investigation (DSI) for falsifying financial statements for 2023 and accounting documents for the first quarter of 2024. The charges include recording false statements and submitting financial documents containing inaccuracies with the intent to deceive.
According to Thai News Agency, JKN’s auditors had reported several irregularities to the Audit Committee, citing issues such as commercially unreasonable content licensing transactions and duplicate license purchases. The auditors’ inability to express an opinion on JKN’s consolidated financial statements for 2023 stems from these inconsistencies and the company’s liquidity issues.
The SEC’s review of JKN’s financial statements from 2020 to 2023 revealed discrepancies, including a significant increase in copyright assets that did not align with revenue from copyright sales. Questions have arisen regarding the validity of these purchases, the existence of trade receivables, and the actual sale of copyrights.
The investigation found that Mr. Jakkaphong Jakrajutatip and Ms. Pim-uma Jakrajutatip were involved in creating fictitious creditors and debtors in JKN’s financial records for 2023. This resulted in misstated revenue and liabilities, with incorrect recording of royalties payables. The actions led to the manipulation of trade creditors to influence company decisions, violating Section 312 of the Securities and Exchange Act.
Furthermore, Mr. Jakraphong, on behalf of JKN, submitted false financial statements to the SEC, constituting a breach of Section 281/10 of the Securities Act. These offenses prompted the SEC to file charges with the DSI, rendering the accused untrustworthy to hold positions in securities issuing companies.
The SEC is expanding its investigation into other questionable cases and will coordinate with the DSI for further legal action. Following the indictment, the criminal law enforcement process will proceed with investigations, prosecutions, and court considerations. The SEC pledges to monitor the case’s progress and fully cooperate with relevant agencies to uphold the Securities Act.