Three executives facing charges

The Securities and Exchange Commission has filed charges with the Department of Special Investigation against SEC Auto Sales and Services (SECC) chairman Sompong Witthayaraksan and two accomplices for allegedly falsifying auto sales documents and siphoning off company money.

Nipaporn Khomkla, the company's executive vice president for accounting and finance, and Krit Ekmongkolkarn of Apple Group and QR Auto Car were named as the accomplices.

"The SECC case has [had] significant impacts on investors and the company's clients. The Securities and Exchange Commission's initial investigation has found that five individuals and companies have been involved in the case and the investigation showed that they could have committed other crimes. We're in the process of accumulating more evidence," Securities and Exchange Commission (SEC) secretary-general Thirachai Phuvanatnaranubala said yesterday.

The investigation will also be extended to substantiate SECC shareholders' claims that they have not yet received payment for the sale of shares to securities companies. The companies' marketing officers could have failed to follow the regulations, Thirachai said.

Sompong fled Thailand late last month, following reports that a large number of cars were missing from bonded warehouses. This led the SEC to investigate the company's inventory.

As of December 15, the inventory covered 501 vehicles worth Bt1.43 billion. However, the location of 493 of these vehicles - worth Bt1.4 billion - was unknown and convinced the authorities that the vehicles did not exist.

In the SEC's statement, Sompong is alleged to have siphoned off company money through forging auto purchase documents, with the purchase money for non-existent cars going to Sompong. An initial estimate is that this year the company paid Bt597.9 million for the purchase of 197 non-existent cars.

Sompong is charged with violating the Securities and Exchange Act's Articles 307, 308, 311 and 313. Nipaporn is charged of violating Article 315.

Sompong and Nipaporn are charged with conspiring to forge documents. This led to the false number of inventories, which is in violation of Article 312 of the Act.

Assisting them were Apple Group and QR Auto Car and Krit, who is an authorised director of both companies. He is accused of breaching Article 315.

If proved guilty, breaching Articles 307, 308 and 311 involves imprisonment of five to 10 years and fines of Bt500,000 to Bt1 million.

Article 313 specifies that listed companies' directors, executives or authorised individuals that breach Articles 307, 308, 309 or 311 are subject to imprisonment of five to 10 years and compensation at twice the value of the assets or benefits involved.

Article 315 subjects any accomplices to those who breach the above articles to the punishment clauses specified in those articles.