Stark Corporation’s interim CEO detained amid corporate scandal investigations

Stark Corporation interim CEO Vonnarat Tangkaravakoon has been apprehended amidst ongoing investigations into a series of corporate scandals. Vonnarat, presently detained in a private hospital under the authority of the Department of Special Investigation (DSI), was initially taken into custody at the hospital where he was receiving medical care. A warrant issued by the Criminal Court facilitated his arrest yesterday, February 10.

Sources indicate that the prosecution is likely to present Vonnarat before the Criminal Court for indictment tomorrow, February 12. To date, charges have been brought against five individuals, inclusive of Vonnarat, and five companies, including Stark Corporation. The accused are implicated in financial misconduct, specifically in conspiring to falsify financial documents in the years 2021 and 2022.

The case was initiated by the Special Litigation 1 team of the Office of the Attorney-General on January 12, following a request by the DSI. Before this, the DSI had presented a case summary to the prosecutors, pressing them to institute legal proceedings against seven employees of Stark and five companies.

The charges include forgery, fraud, embezzlement, and money laundering under the auspices of the Securities and Exchange Act, reported Bangkok Post.

The implicated individuals are Vonnarat, former board member Chinawat Assavapokee, ex-chief financial officer Sathar Chantrasettalead, former chief of marketing Kittisak Jitprasertngam, Yosabavorn Amarit who previously served as Sathar’s secretary, former chair Chanin Yensudchai and secretary Nattaya Prabpetch. Chanin Yensudchai remains elusive.

The involved companies comprise Stark Corporation and its subsidiaries, namely Phelps Dodge International (Thailand), Thai Cable International, Adisorn Songkhla Co, and Asia Pacific Drilling Engineering.

This alleged misconduct has reportedly impacted 4,704 shareholders, inflicting a financial loss estimated at 14.7 billion baht (US$ 409,356,780).

In related news, the Department of Special Investigation (DSI) has placed a freeze on a staggering 220 million baht held in the bank account of Chanin Yensudchai, the erstwhile chairman of the beleaguered Stark Corp. According to DSI spokeswoman Pichaya Tarakornsanti, the action is part of a broader measure to offer compensation to victims in light of the ongoing scandal.