THG chairman who lied about vaccines for stock profit resigns

Thonburi Healthcare Group founder and chairman Dr Boon Vanasin announced he will step down today after the Securities and Exchange Commission reported it would ban him from sitting on the board of any company listed on the Stock Exchange of Thailand. The move is a result of some shady claims last year about THG importing Pfizer vaccines that caused stock prices to surge connected to even shadier stock purchases in THG by Boon’s wife.

And who is stepping in to replace Boon after he resigns from THG over false statements to inflate stock prices? Boon’s wife who made the stock purchases is stepping into the role. THG insists the company’s operations will be unaffected by the chairman’s resignation, saying they have qualified directors and a professional management team.

The ban is for three and a half years and comes along with a massive 2.34 billion baht fine after an investigation into possible manipulation or insider trading. Punishment will occur as soon as Boon accepts them, otherwise, the case will go to the Civil Court if he refuses.

In the height of the rush to finally get Covid-19 vaccines into Thailand around in July and August of last year, Dr Boon announced that THG had negotiated to import somewhere between five and 20 million Pfizer vaccines, only to be followed a few hours later by Pfizer-BioNTech responding that they have never had any dealings with THG and no contract had been signed.

In July he said he was confirming a purchase of five million Pfizer vaccines, and on August 3 he further claimed a new deal to import 20 million Pfizer doses. Neither ever came to fruition. But the exciting announcements did cause heavy trading and volatility as THG stock prices soared and analysts cautioned investors.

Also, the seemingly false announcement was made just after Boon’s wife purchased a large amount of stock in the company. Between July 2 and July 13, Boon’s wife made eight transactions and in total bought 950,000 shares of THG stock, paying between 28.50 and 29.50 baht each.

Then on July 14, the announcement was made to BBC Thailand that THG is importing millions of Pfizer-BioNTech vaccines. Shares of THG jumped 13% on the news when it became public the next day, which would equate to about 3.5 million baht in profit for Boon’s wife. THG shares are currently trading at 67.75 baht.

SOURCE: Bangkok Post