Bangkok: The SEC has taken civil penalty action against two offenders, Ms. Wanlee Sangsiri and Ms. Sunitha Chutinthorn, for manipulating the price or volume of shares of Thonburi Medical Center Public Company Limited (KDH), by demanding a total civil fine of 17,215,750 baht.
According to Thai News Agency, the Securities and Exchange Commission (SEC) received information from the Stock Exchange of Thailand (SET) in August 2016. A subsequent investigation revealed that Ms. Wanlee and Ms. Sunisa knowingly collaborated to place KDH share purchase orders that artificially inflated the price. They sent large volumes of purchase orders at various price levels and placed orders that chased the price, while simultaneously placing sell orders above market prices to manipulate the market. This tactic, known as “Pump and Dump,” was executed from February 26 to March 7, 2016, and from March 8 to April 18, 2016, causing the KDH share price to deviate from normal market conditions.
The actions of Ms. Wanlee and Ms. Sunitha constitute an offence of manipulating the price of KDH shares under Section 243(1) in conjunction with Section 244 and Section 243(2) of the Securities and Exchange Act B.E. 2535 (Securities Act) in conjunction with Section 83 of the Criminal Code. This is punishable under Section 296 of the same Act. The amended Securities Act (No. 5) B.E. 2559 still considers this an offence under Section 244/3 in conjunction with Section 244/5, which is punishable under Sections 296, 296/1, and 296/2. Section 47 of the amended Act provides for the application of civil penalty measures for such offences.
The Civil Penalty Consideration Committee (CPC) resolved to impose civil penalties on the two offenders, with Ms. Wanlee required to pay a civil fine of THB15,297,812.50 and Ms. Sunitha THB1,917,937.50. The penalties will be enforced once the offenders sign a memorandum of consent to comply with the CPC’s ruling. Should they refuse, the SEC will request the public prosecutor to file a lawsuit in Civil Court to enforce civil penalties at the highest legal rate, not lower than the CPC’s rate.
The civil fines collected from this offense will be considered national income and forwarded to the Ministry of Finance.